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QUESTION:

Multiple Choice Question

What is one of the benefits of pursuing a differentiation strategy when it comes to the power of suppliers?

Multiple choice question.

Differentiation results in the erosion of margins.

Differentiation provides protection against an increase in input prices.

Differentiation results in costs that increase above acceptable thresholds.

Differentiation provides protection against substitute products by lowering prices.

ANSWER:

Multiple Choice QuestionYour Answer correct

What is one of the benefits of pursuing a differentiation strategy when it comes to the power of suppliers?

Multiple choice question.

Differentiation results in the erosion of margins.

Differentiation provides protection against an increase in input prices.

Differentiation results in costs that increase above acceptable thresholds.

Differentiation provides protection against substitute products by lowering prices.

Reason:

1) This mentions substitutes instead of suppliers, and 2) the effect of a differentiation strategy on the threat of substitutes is actually protection against substitute products due to differential appeal.

Correct AnswerQuestion

Differentiation provides protection against an increase in input prices.

Posted by Cleveland on November 7, 2024

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Multiple Choice QuestionYour Answer correct

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