Counterfeit products are a serious problem for firms following the differentiation strategy.

Question

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Counterfeit products can mimic the appearance and branding of original products, which can weaken the unique value proposition of a firm that follows a differentiation strategy. It can damage the reputation of the authentic brand and cause confusion among customers, ultimately leading to a loss of market share and revenue. Therefore, counterfeit products are a significant concern for firms that rely on product differentiation to maintain a competitive advantage.

Counterfeit Products Are a Serious Problem for Firms Following the Differentiation