Question

The keys to maintaining a broad differentiation strategy are to:

A. stress constant innovation to stay ahead of imitative rivals and to concentrate on a few differentiating features.
B. charge a premium price that more than covers the extra costs of differentiating features and to convince customers to be brand loyal.
C. out-innovate and out-advertise rivals.
D. emphasize personalized customer service and to add as many differentiating features as possible.
E. keep prices close to the average of all rivals and to spend heavily on new product R&D.

Answer 1

Maintaining a differentiation strategy relies on continuous innovation and creating distinctive, appealing products that outshine competitors' offerings, enabling temporary above-normal profits.

Step-by-step explanation:

The keys to maintaining a broad differentiation strategy include a focus on constant innovation to maintain an edge over competitors and to develop differentiating features that strongly appeal to consumers.

Additionally, it's crucial to create distinctive products that stand out in physical aspects, location, intangible aspects, or perceptions. As highlighted by Greg Lee's sentiment on Samsung's commitment to innovation, it enables a company to temporarily earn above-normal profits and captures consumer interest with unique product characteristics.