The differentiation strategy can be effective in controlling the power of rivalry in an industry because:
A)customers will seek out the lowest-cost product
B)customers have no loyalty
C)customers are loyal to brands that satisfy their differentiated needs
D)the differentiation strategy benefits from rivalry

Question

Quizplus · Accepted Answer

The differentiation strategy aims to offer unique and differentiated products or services that stand out from competitors, making customers more loyal to those brands. As a result, customers are willing to pay premium prices for unique features, benefits, or quality. This loyalty protects the company from the power of rivalry as customers are less likely to switch to competitors' products that do not satisfy their specific and differentiated needs.

The Differentiation Strategy Can Be Effective in Controlling the Power