Mekcin is a company that regularly launches products with features that are different from what are offered in the market. It has now launched a new electronic device which can be fitted to vehicles. It can be programmed to automatically dial the police emergency number, provide them with all the required location details, and guide them to the location, in the case of an emergency. It also charges higher for its products than what other companies charge for their products. What disadvantage would the company face because of the strategy it follows?
A) The firm needs to attract huge numbers of customers in order to have a good overall level of profit.
B) This company lacks an ability to obtain premium prices from customers.
C) This differentiation strategy allows the entrance of new companies in the market.
D) This strategy lacks the capacity to generate buyer loyalty.
E) Competitors may be able to imitate the features well enough that they are no longer unique.

Question

Quizplus · Accepted Answer

Competitors may be able to imitate the features well enough that they are no longer unique, which is a common risk associated with differentiation strategies.

Mekcin Is a Company That Regularly Launches Products with Features