The pitfalls of differentiation strategy

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Reference no: EM132113756

A. The pitfalls of a differentiation strategy include

1. charging too high a price premium for the differentiating features

2. differentiating on the basis of attributes that buyers do not perceive as valuable or worth paying for

3. differentiating on the basis of attributes or features that are not easily copied

4. a and b

5. a and c

6. b and c

7. a, b, and c

B. A winning strategy is one that

1. makes the company a market leader, is ethically and socially responsible, and maximizes profit

2. is highly profitable and boosts the company’s market share

3. passes the profitability test, the ethics and social responsibility test, and the customer satisfaction test

4. passes the profitability test, the ethics and social responsibility test, and the competitive advantage test

5. fits the company’s internal and external situation and builds sustainable competitive advantage.

Reference no: EM132113756

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