Final answer:
The app designed to restrict texting while driving in accordance with Distracted Driving Regulations is an example of Market differentiation, aiming to stand out with unique safety features in a competitive market.
Step-by-step explanation:
A competitor has designed their app that limits texting while driving, adhering to Distracted Driving Regulations. The app is an example of Market differentiation. This business strategy involves creating a product with distinctive features to stand out in the market, which can range from functionality, design, to user experience, among other aspects. Not only does market differentiation help in meeting the government policies that can reduce transaction costs and increase conformity costs, but it also aligns with the concept of technological innovation. As firms compete in the market, they are incentivized to discover new technologies which allow them to produce better products or reduce production costs, as indicated by the quote from Gregory Lee, CEO of Samsung. This innovative edge can lead to above-normal profits until competitors catch up. Furthermore, by focusing on safety and promoting responsible behavior—which has high value due to the potential cost savings on public health and accident prevention—this app differentiates itself from others that might not emphasize these aspects as strongly.