Which statement regarding competitive advantages is true?
A) With an overall cost leadership strategy, firms need not be concerned with parity on differentiation.
B) If several competitors pursue similar differentiation tactics, they may all be perceived as equals in the mind of the consumer.
C) In the long run, a business with one or more competitive advantages is probably destined to earn normal profits.
D) Attaining multiple types of competitive advantage is a recipe for failure.

Question

Quizplus · Accepted Answer

Potential pitfalls of a differentiation strategy include the idea that perceptions of differentiation may vary between buyers and sellers. The issue here is that beauty is in the eye of the beholder. Companies must realize that although they may perceive their products and services as differentiated, their customers may view them as commodities.

Which Statement Regarding Competitive Advantages Is True