Question

Successful differentiation allows a firm to.....

A. Be the industry best cost provider
B. Set the industry ceiling floor
C. Avoid being dragged into a price war with industry rivals and not overly concerned wheter entry barriers into the industry are high or low.
D. Command a premium price for its products and/or increase unite, sales and or give buyer equity to its brand.
E. Take sales and market shares away from the rivals by undercutting them on a price.

Answer 1

The correct answer is option D. Command a premium price for its products and/or increase unite, sales and or give buyer equity to its brand.

Step-by-step explanation:

Successful differentiation allows a firm to command a premium price for its products and/or increase unit sales and/or give buyer equity to its brand. By making its products different from those of its competitors in physical aspects, location, intangible aspects, or perceptions, the firm can stand out in the market and attract customers who are willing to pay a higher price for its unique offerings.

This differentiation strategy also enables the firm to avoid being dragged into a price war with industry rivals and be less concerned with the level of entry barriers into the industry.