Product differentiation and environmental opportunities
4 important questions on Product differentiation and environmental opportunities
How does product differentiation assist firms in emerging industries?
- Perceived technological leadership
- Pre-emption of strategically valuable assets
- Buyer’s loyalty due to high switching costs
What is product refinement in mature industries?
- Slight product modifications, known as product refinement
- Efforts to find refinement methods are often challenging
- Firms may exaggerate their product improvements
How can firms in declining industries use product differentiation?
- Becoming a market leader
- Leveraging reputation or unique product attributes
- Finding new viable niche markets for survival
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What is the impact of product differentiation on global markets?
- Leveraging advantages from one country
- Entering new markets in other regions
- Facilitating expansion and competitive positioning
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