Product differentiation is a strategy used by businesses to differentiate their products or services from the products already available in the market. As the market entry barriers are reducing, companies are entering the market with a product differentiation strategy to gain a competitive advantage and offer unique selling prepositions (USP). Companies that have a product line of multiple products used this strategy to differ their products from each other and avoid cannibalization.
Horizontal differentiation: Differentiation in the same line of products that are not linked with the quality and price of the products. e.g. Coke vs Pepsi. The choice between 2 products is totally on user own preferences and taste.
Vertical differentiation: Differentiation is introduced in products that are competing on price and quality of the product. E.g. branded Nike t-shirt vs local t-shirt.
Consider the following series of independent situations in which a firm is
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Consider the following series of independent situations in which a firm is
Starbucks is the world’s largest specialty coffee retailer, with more than
If a firm successfully adopts a product differentiation strategy, the elasticity
Compton Associates is an architectural firm that has been in practice only
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Market Structure Concepts. Indicate whether each of the following statements is
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