A risk of the differentiation strategy is that the firm's means of differentiation may eventually not provide value for which customers are willing to pay.

Question

Quizplus · Accepted Answer

This statement is true as customers' preferences and needs may change over time, leading to a decline in the perceived value of the differentiated features offered by the firm. Therefore, the differentiation strategy should be continuously evaluated and adapted to stay relevant in the market.

A Risk of the Differentiation Strategy Is That the Firm's