Question

Differential advantage is typically the result of a business:

A. Adopting a code of conduct that is different from other businesses.
B. Exhibiting heterogeneity each time it provides its services.
C. Being distinct from other businesses in terms of product, price, place, and promotion.
D. Going through different stages of new product development and product life cycle.

Answer 1

Differential advantage in business refers to the unique qualities or features that set a business apart from its competitors. This can be achieved through physical aspects of the product, location, intangible aspects, or customer perceptions. Going through different stages of new product development and the product life cycle can contribute to a business's overall differentiation strategy.

Step-by-step explanation:

Differential advantage in business refers to the unique qualities or features a business has that set it apart from its competitors. These qualities can be in the form of physical aspects of the product, the location from which the product is sold, intangible aspects of the product, or customer perceptions of the product.

For example, a clothing store may have a differential advantage by offering unique designs or customized tailoring services that other clothing stores don't offer. Similarly, a restaurant may have a differential advantage by providing a unique dining atmosphere or a special menu item that sets it apart from other restaurants.

This differential advantage allows a business to attract customers and gain a competitive edge in the market. It is not necessarily a result of going through different stages of new product development and the product life cycle, although these factors can certainly contribute to a business's overall differentiation strategy.