Microsoft is hoping to head off a new threat from Google's Documents and Spreadsheets, a set of free Web based software tools that Google hopes also to make available offline. That capability would make Google's office productivity programs a direct challenge to Microsoft's Word and Excel programs, for which users usually pay hundreds of dollars. This is an example of
A) Competitive differentiation.
B) Strategic alliance.
C) Relationship marketing.
D) The European factor.

Question

Quizplus · Accepted Answer

Competitive differentiation refers to a strategy of differentiating a company's products or services from its competitors in order to gain a competitive advantage. In this case, Microsoft is attempting to differentiate itself from Google's free web-based software tools by offering more robust and feature-rich versions of Word and Excel that users must pay for.

Microsoft Is Hoping to Head Off a New Threat from Google's