Drawbacks of a Differentiation Strategy
What are the drawbacks of a Differentiation Strategy?
Expert
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.
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