A health drink company is known for launching drinks with flavors which are different from what are offered in the market. It regularly indulges in experimentation to come up with new and exotically flavored drinks. It also charges higher than the other health drink companies. 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) Differentiation lacks an ability to obtain premium prices from customers.
C) A differentiation strategy allows the entrance of new companies in the market.
D) A differentiation 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 imitate the unique features, reducing the company's competitive advantage and uniqueness in the market.

A Health Drink Company Is Known for Launching Drinks with Flavors