Question

An advantage of the differentiation strategy is: select one:

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.

Answer 1

An advantage of the differentiation strategy is GREATER BARRIERS TO ENTRY. Differentiation is the manner in which a company sets his products or service apart from others in the market; it's a mean of distinguishing their brands from all other. One advantage of this is that it makes industry entry difficult because new companies lack brand names which can enhance their competition and customers will not perceive new company's products as close substitutes to that which is already in the market.