Final answer:
A company pursuing a differentiation strategy will invest more in research tools and techniques to create differentiated products that highlight their core competencies, allowing it to stand out in the market.
Step-by-step explanation:
A company pursuing the differentiation strategy typically tends to make more investments in research tools and techniques. The focus of the differentiation strategy is on creating unique features or characteristics for its product or service to distinguish it from competitors. By emphasizing distinctive attributes, whether it be through product design, technology, brand image, or customer service, a company can command a higher price for its offering. The investment in research enables a firm to innovate and maintain its unique positioning in the market.
Core competencies are essential for a differentiation strategy. A business focusing on one or a few products that highlight their core competencies may be more successful than a company with a broader range. This approach aligns closely with creating differentiated products.