A manufacturer of jewelry imitates the style of a popular and expensive brand using manufactured stones rather than real gemstones and lesser grade metals rather than silver and gold.The manufacturer packages the jewelry in boxes of the same color imprinted with an almost identical logo.About 85 percent of the company's sales are through Internet sales.This example illustrates the competitive risk of __________ that threatens companies that use the differentiation strategy.

Question

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This example illustrates the competitive risk of counterfeiting, where a company imitates the style and branding of a popular brand, potentially misleading customers and undermining the original brand's differentiation strategy.

A Manufacturer of Jewelry Imitates the Style of a Popular