Drawbacks of a Differentiation Strategy

Question

What are the drawbacks of a Differentiation Strategy?

Answer 1

The drawbacks of a Differentiation Strategy:

a. Here no guarantees that differentiation will create a meaningful competitive benefit.

b. If purchasers perceive small value in the unique capabilities or attributes of a product then the organization’s differentiation strategy will acquire a ho-hum market reception.

c. Attempts at differentiation are fated to fail if competitors can speedily copy most or all of the appealing product attributes a organization comes up with.

d. A low-cost supplier strategy can beat a differentiation strategy when purchasers are satisfied with a basic product and don’t think additional attributes are worth a superior price.