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How a differentiation strategy can help a firm to improve

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Reference no: EM132501011

Question 1: Which of the following is FALSE regarding how a differentiation strategy can help a firm to improve its competitive position vis-Ã - Porter's five forces?

Option 1: Supplier power is increased because suppliers will be able to charge higher prices for their inputs.

Option 2: It helps a firm to deal with supplier power and reduces buyer power since buyers lack comparable alternatives.

Option 3: By increasing a firm's margins, it avoids the need for a low cost position.

Option 4: Firms will enjoy high customer loyalty, thus experiencing less threat from substitutes than its competitors.

Reference no: EM132501011

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