A business model based on differentiation requires a company to
A)make strategic choices that reinforce each other and increase the value of a good or service in the eyes of customers.
B)serve several market segments simultaneously to take full advantage of differentiation.
C)systematically raise its prices at stipulated times.
D)develop a functional organization structure.
E)all of these choices.

Question

Quizplus · Accepted Answer

A business model based on differentiation requires a company to make strategic choices that reinforce each other and increase the value of a good or service in the eyes of customers. This means that the company needs to differentiate their product or service from competitors in a way that is meaningful to customers and add value to their experience. This can involve creating unique features, offering superior customer service, or focusing on a specific niche market. Serving several market segments simultaneously and systematically raising prices may not always be the best approach for differentiation. Developing a functional organizational structure is important for any business, but it is not directly related to differentiation.

A Business Model Based on Differentiation Requires a Company to