An advantage of the differentiation strategy is:
A) improved efficiency of equipment.
B) less expensive new products.
C) higher level of employee skills.
D) reduced turnover of employees.
E) greater barriers to entry.

Question

Quizplus · Accepted Answer

Differentiation makes industry entry difficult because new companies have no brand name to help them compete and customers do not perceive other products to be close substitutes,so this also allows for premium pricing and results in high profits.

An Advantage of the Differentiation Strategy Is