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Provides defenses against competitive forces
  • RIVAL COMPETITORS - Buyers develop loyalty to brand they like best
  • BUYERS - Mitigates bargaining power of large buyers since other products are less attractive
  • SUPPLIERS - Seller may be in better position to withstand efforts of suppliers to raise prices
  • POTENTIAL ENTRANTS - Buyer loyalty acts as entry barrier
  • SUBSTITUTES - Better positioned to fend off threats of substitutes based on customers’ attachment to differentiating attributes

WHAT KIND OF DIFFERENTIATION TO PURSUE

 

  • Most appealing types of differentiation strategies
    • Those LEAST subject to imitation
  • Most likely to produce an attractive, longer-lasting edge when it’s based on:
    • Technical superiority
    • Quality
    • Giving customers more support services
    • Giving customers more value for money
    • Core competencies

 

 

 
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