Question

Firms using the differentiation strategy need to respond quickly to environmental opportunities and threats. The structural features that are best for these requirements are centralization, specialization, and many rules and procedures. True or false?

Answer 1

False

Step-by-step explanation:

Differentiation strategy as the name implies can be defined as a business strategy in which a firm develops a new product or service with the aim of standing out from products and services of other competitors.

Differentiation strategy is good because it gives room for non-price competition. That means that competition between between firms are not based on prices at all.

Also, the differentiation strategy allows for brand loyalty. That is, brands of competitors have their customers without stress.

Cheers.