The differentiation strategy can be effective in controlling the power of rivalry with existing competitors in an industry because:
A) customers will seek out the lowest-cost product.
B) customers of nondifferentiated products are sensitive to price increases.
C) customers are loyal to brands that are differentiated in meaningful ways.
D) the differentiation strategy benefits from rivalry because it forces the firm to innovate.

Question

Quizplus · Accepted Answer

Differentiation creates brand loyalty by offering unique features or benefits, reducing the impact of rivalry as customers are less likely to switch to competitors.

The Differentiation Strategy Can Be Effective in Controlling the Power