Question

Identify which bases of product differentiation are likely to be almost always easy to duplicate, which can sometimes be costly to duplicate and which are usually costly to duplicate and discuss under what conditions a bases of differentiation is likely to be costly to imitate and can be a source of sustained competitive advantage.

Answer 1

Product features are almost always easy to duplicate as they are not costly to duplicate, the company just has to make the wrapper identical color, or font size and shape similar. Which are costly to duplicate are location and reach of the product, if one product serves in a particular locality, it is not always easy to gain the distribution channel and contact, in addition making a product like the competitive product can also turn out to be costly sometimes as the firm will face charges and even if it creates a product which is slightly different the customer needs to like it taste wise and shape wise. Under conditions when demand is falling it is difficult and costly to imitate as the firm may face charges, on top of which it is not certain whether there will be demand for the new product as sales are already low. It can create products which have competitive advantage when it is a new and updated version of the current competitors for example a mobile phone which has exactly same features but has enhanced facilities making the product innovative.