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Bases of product differentiation in the previous question

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a) Should a firm pursue differentiation in an industry where customers are very price-sensitive? As low prices are often supported by low costs, what can a differentiation strategy hope to achieve in such a market?

b) Product features are often the focus of product differentiation efforts. Yet product features are among the easiest-to-imitate bases of product differentiation and thus among the least likely bases of product differentiation to be a source of sustained competitive advantage. This appears paradoxical. How can you resolve this paradox?

c) What are the strengths and weaknesses of using regression analysis and hedonic prices to describe the bases of product differentiation?

d) Implementing a product differentiation strategy seems to require just the right mix of control and creativity. How do you know if a firm has the right mix?

e) One of the bases of product differentiation is complexity in the good or service. Explain how this can distinguish the uniqueness of the product in the minds of the target customers.

f) Which, if any, of the bases of product differentiation in the previous question are likely to be sources of sustained competitive advantage? Why?

g) How can product differentiation be used to neutralize environmental threats and exploit environmental opportunities?

Reference no: EM132605133

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