Question

What business strategy you will recommend for a business in which pressure for product differentiation is high? Discuss.

Answer 1

Answer :- A differentiate product helps to gain market share as well as build loyalty of customers . It helps in Surviving higher price point. If a companies product is better than it's competitors, customer will prefer it without even considering it's higher price. A product strategy must demonstrate that product can compete with its competitors product giving extra benefit that no one can offer.

Strategies for businesses in which pressure for product differentiate is high :-

*price :- companies can have lower price for their product to attract more customers such as costco or charge higher price in case of luxury products such as super cars.

*Performance and reliablity :- products which are reliable and have longer life are consider better than it's competitors products . Performance increased plays a key role in differentiating product such as batteries,sport shoes etc.

*location and service :- In case of small or local companies that trying compete with big brands (national or international brands) must emphasise on local business and should give extra services considering neighborhood to showcase higher quality service and products .