A major problem with a differentiation strategy centers on the long-term ability to maintain a product's perceived difference or distinctness in customers' eyes.

Question

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Differentiation strategy relies heavily on the perceived distinctness of the product or service. However, over time, competitors may imitate or improve upon the differentiated features, making it difficult to maintain the product's distinctness in customers' minds. Therefore, maintaining a differentiation strategy in the long-term can be challenging.

A Major Problem with a Differentiation Strategy Centers on the Long-Term