Under which condition would a differentiation strategy be especially effective?
A) when there are few ways to differentiate the product or service that buyers perceive as having value
B) when technological change is fast paced and competition revolves around rapidly evolving product features
C) when most buyers use the product in the same way
D) when many rival firms are following a similar differentiation approach
E) when the differentiation base is easy or inexpensive for rivals to duplicate

Question

Quizplus · Accepted Answer

A differentiation strategy is especially effective when there is a lot of competition and rapid technological change, as this allows a company to stand out from its competitors and offer unique features that are valued by consumers. In a fast-paced industry, differentiation can be a key driver of success, as it allows a company to stay ahead of the curve and offer customers something that its competitors cannot easily replicate.

Under Which Condition Would a Differentiation Strategy Be Especially Effective