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 differentiation strategy.

Question

Quizplus · Accepted Answer

The manufacturer in this scenario is counterfeiting a popular and expensive brand's style, which poses a threat to the original company that uses real gemstones and metals. This highlights the risk of counterfeiting that threatens companies that use differentiation strategy.

A Manufacturer of Jewelry Imitates the Style of a Popular