One risk of the differentiation strategy is that:
A)a competitor may focus on the same market segment
B)equipment may quickly become obsolete
C)a firm's means of differentiation may no longer provide value to the customer
D)a firm may fail to detect competitors' efforts to differentiate the commodity product

Question

Quizplus · Accepted Answer

The differentiation strategy relies heavily on providing unique and valuable features to the customer. However, over time, competitors may adopt similar features or customers may no longer find them valuable. This could lead to a decline in demand for the differentiated product and loss of market share for the company.

One Risk of the Differentiation Strategy Is That