what is a major pitfall of the differentiation strategy?

Potential pitfalls of focus strategies include: erosion of cost advantages within the narrow segment; the idea that even product and service offerings that are highly focused are subject to competition from new entrants; and focusers that become too focused to satisfy buyer needs. Other firms may out differentiate the existing firms by introducing better unique products into the market. The differentiation strategy is one of the three main marketing strategies, along with the low-cost provider strategy and the focus strategy. The increased competition has divided the demand among different players in the market. Through differentiation at the product level, different brands from different businesses can easily be identified by the consumer. In the case of a service industry, a major player would be Air Asia, a low-cost Asian flight operator which operates only in Asia at a very low cost. 5-6 See Page 1. The question can be raised if this level of knowledge is something that should be required of all salespeople. The manufacturer often applies this tactic to ensure that the customer still buys their products because they have multiple choices from which the customer can pick from. If you have to make it cheaper to appeal to the customer than make sure it’s within reasonable margins. For example, the tetra pack is an excellent differentiation strategy since the tetra pack is unique compared to other means of packaging. These companies use advertising to show consumers the differences. E. size of the buyer group to which a company is appealing. When substitutes hit the market at lower prices it negatively affects the differentiating firm since consumers will opt for the cheaper products compared to the products being offered at higher prices by the differentiating firm. The best way to go about pricing is to have a market analysis of the prevailing market prices for the kind of good and products you want to launch to help you in deciding how to price your products. Sign up today! B. choosing to differentiate on the basis of attributes that buyers do not perceive as valuable or worth paying for. Below we illustrated a few examples in relation to an often differentiated product – women’s handbag. A. , Firms that fail to attain both strategies may end up with neither and become stuck-in-the-middle.B. Advertisement plays a crucial role in reaching the desired market group. By creating, marketing, and selling a product or service intended for a niche market, then it becomes possible to become the recognized expert in that market better than those promoting a generalized strategy instead. A poor customer relationship will lead to reduced profits while a good one will earn customer loyalty and ultimately lead to improved profits. First, makes sure you know your target audience if you want to appeal to kids, make sure you are well versed with the latest cartoon features to include in your product branding. A pitfall to avoid in pursuing a differentiation strategy is: A. trying to differentiate on the basis of attributes or features that are easily and quickly copied. Problem 42MCQ from Chapter 5S5.3: The pitfalls of a differentiation strategy includeA. The differentiation can be too extreme that the consumers don’t believe its credibility or they see it as an excessive luxury. Differentiation can be negative when it is done to the extremes. Let us consider two examples here, NetJets (USA, Europe, and China) and another of DC designs (India.) The major difference between a low-cost provider strategy and a focused low-cost strategy is the A. amount of outsourcing involved. Firms that fail to attain both strategies may end up with neither and become stuck-in-the-middle. Looking from different perspectives, colleagues in different roles very often disagree on if certain capabilities are unique or not. C. number of upscale attributes incorporated into the product offering. Question 1 10 out of 10 points One potential pitfall of a differentiation strategy is that identification of the brand in the marketplace may become diluted through excessive product line extensions. Which of the following is a risk (or potential pitfall) of a differentiation strategy? They can market their products based on their earlier successes. Holistic and collaborative. And after that, take another good look to see if these are really of value to the client or prospect where you are positioning these. Top pitfalls of strategic management 1. All rivals share a common input or raw material. Through inventing new products one can differentiate themselves by introducing a new product into the market and establishing themselves as market leaders. A. Uniqueness that is not valuable. The outlined below are examples of differentiation strategy, pros, and cons. Teachers differentiate to help each child learn and progress with methods that are specifically tailored to the child's academic needs. A differentiation strategy calls for the development of a product or service that offers unique attributes that are valued by customers and that customers perceive to be better than or different from the products of the competition. I look at it this way: you are guaranteed to undermine your credibility with prospects and clients if as a seller you position something as unique – and it actually is not. This does not only mean knowledge of your own offerings, but also knowledge of the client´s world, the marketplace and – not unimportant: potential alternatives to your offering. Commoditization is everywhere. D. length of the managerial experience curve. It allows firms to shield themselves from the competition. Such cost leadership or low-cost operation is o… Guarantee Your Academic Success! At these times, differentiation is more important than ever – and many organizations are aware of this. Briefly describe the three generic strategies—cost leadership, differentiation, and focus—and discuss the pitfalls associated with each of the three generic strategies. Finally, create the product and implement the customer opinions about the kind of brand they wish to see. This often leads to surprised responses from senior managers or product managers: “Don´t they know that?”. Many organizations are stepping in one of the 4 pitfalls of differentiation. Definition: Differentiation strategy, as the name suggests, is the strategy that aims to distinguish a product or service, from other similar products, offered by the competitors in the market.It entails development of a product or service, that is unique for the customers, in terms of product design, features, brand image, quality, or customer service. Now that you know what they are, you’re more likely to jump right over them! Is it sales, marketing, product management or the rest of the organization? But they quickly realized they could be more than just a domain name registrar or web hosting company. Teachers differentiate to help each child learn and progress with methods that are specifically tailored to the child's academic needs. Take a step and introduce one of these strategies for business growth and profitability. Customer relations also means that you are willing as the business manager to go out of your way to share the business goals and vision to the customer so they can feel like part of the business. A narrow market focus is to a differentiation-based strategy as a _____. The pitfalls of a differentiation strategy include. To make a success of a Differentiation strategy, organizations need: Good research, development and innovation. Unfortunately, there was a high price to pay. PITFALLS TO AVOID IN PURSUING A DIFFERENTIATION STRATEGY:-Relying on product attributes easily copied by rivals.-Introducing product attributes that do not evoke an enthusiastic buyer response.-Eroding profitability by overspending on efforts to differentiate the firm's product offering. B. cost leadership, differentiation and focus which he suggested to be useful in securing a sustainable competitive advantage. Free for students, parents and educators. C. trying to charge too high a price premium for the differentiating features. D. Differentiation Strategy. A poor customer relationship will lead to reduced profits while a good one will earn customer loyalty and ultimately lead to improved profits. Identifying attribute of a product which are unique from competitors in the industry is the driving factor in the differentiation leadership strategy. Organizations that are able to avoid these 4 pitfalls, are measurably more successful. D. Perceptions of differentiation may vary between buyers and sellers. Example of Focus Strategy. trying ... Get solutions The value added by the uniqueness of the product may allow the firm to charge a premium price for it. Pitfalls in Production Differentiation. Good customer relations is a major differentiation business strategy in the service industry. Problem 42MCQ from Chapter 5S5.3: The pitfalls of a differentiation strategy includeA. Short termism Marks & Spencer fell prey to this in the late 1990s when it announced its target of becoming the first UK retailer to generate annual profits of £1bn. a focused differentiation strategy aims at securing competitive advantage with a product offering carefully designed to appeal to the unique preferences and needs of a narrow group of buyers which of the following is not one of the pitfalls of a low-cost provider strategy Second, create the brands according to the initial plan and the audience you are trying to appeal to. This can occur as buyers become more sophisticated; 3. Differentiation simply means using product features or functionality, innovation, brand image or customer service to make products and services more attractive to the potential consumer. Well, very often this is a real eye-opener. This particular strategy focuses on market research data to understand the client and also to identify what the current competitors are … It is normally employed in firms with clearly defined competitive advantages that can withstand a costly advertising campaign. The customers you make happy today will share the same experience with the rest of their friends and will run to your business for services and products. Recource MP&S Ch. Sellers are insufficiently aware of their real differentiators. 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Thus a differentiation strategy helps create barriers to entry that protect the firm and its industry from new competition. Annual strategy: Strategy is only discussed at yearly weekend retreats. Value chain analysis meaning, importance & examples, 12 types of leadership styles with examples. 57. Think about how to differentiate yourself by combining products, services, locations, financial terms, delivery terms etc. However, during my work with organizations in many different industries across the globe I have learned that it is often not as easy as it may sound. Basics of the Strategic Planning Process. B. B. C. The price premium is too high. Purpose to give that one customer the experience of their life through the way you attend to them and they will come back tomorrow for more with more. B. choosing a product offering that supports buyer's indifference to rival brands' offerings. Besides that, sellers not always have (or take) the time to get informed about the latest unique developments. Probably not. A. Uniqueness that is not valuable. Top pitfalls of strategic management 1. What is a differentiation strategy? These companies use advertising to show consumers the differences. A. Uniqueness that is not valuable. Question: The Pitfalls Of A Differentiation Strategy Include. Let's imagine that you're the owner of a small hunting store. Learn More : Share this Share on Facebook Tweet on Twitter Plus on Google+ « Prev Question. It’s usual to be confronted by these questions, especially when you are in the business world. Porter’s (1980) put forward three generic strategies i.e. 1. Differentiated instruction is inherent in quality instruction. Which of the following is not a potential pitfall of an integrated overall low cost and differentiation strategy? A. trying to differentiate on the basis of attributes or features that are easily copied. Buyers thus sacrifice some of the features, services, or image possessed by the differentiated firm for large cost savings; Buyers need for the differentiating factor falls. If a firm has a product that is high in demand the firm can price it higher. A differentiation strategy example whereby mobile phones like Samsung and iPhone are expensive and target the well-off individuals while cheaper phones attract price-sensitive consumers. differentiation strategy is more likely to generate higher profits than is a low cost strategy because differentiation creates a better entry barrier. D. Perceptions of differentiation may vary between buyers and sellers. Thus, approach a customer with the product sample through displays and sample stand then gather feedback. User convenience results in the creation of customer loyalty leading to a returning customer. Differentiation strategy also involves a series of risks: The cost differential between low-cost competitors and the differentiated firm becomes too great for differentiation to hold brand loyalty. 3. question of how a firm will compete in a particular industry (Figure 5.2 Efficient delivery of services can be a good differentiation strategy as this will earn the business customer loyalty ensuring the customer will purchase goods from the business again thus resulting in improved profits. View full document. A significant portion of the cost savings, achieved through incredibly efficient operations, are retained by the business and, therefore, become profits. B. choosing a product offering that supports buyer's indifference to rival brands' offerings. Leave your email to receive our newsletter, Get the news that matters from one of the leading news sites in Kenya, Drop your mail and be the first to get fresh news, Sales and marketing job description and salary in Kenya, Strategies in business that will lead you to success, Advantages and disadvantages of outsourcing, Best pricing strategies for your Kenyan business, Top 7 sources of business ideas & opportunities for entrepreneurs, Business Opportunities in Kenya: Cool Ideas to Get You Started, This is your key to successful business. EXECUTION. The value added by the uniqueness of the product may allow the firm to charge a premium price for it. The packaging, color, and type of packaging can attract the consumer leading to the consumer purchasing your product over other manufacturers. The foundations of the implement of differentiation strategy are customer needs, competitors, products and services levels. A. Uniqueness that is not valuable. 2. The supposed differentiator is not unique. o Cost cutting may lead to the loss of desirable features. Not everybody is your target customer. Firms such as Walmart and Costco excel at economically providing products to their customers. Analyze and weigh your options against that of your competitors and arrive at a reasonable price that is both friendly to the market and profitable to you. Not opening up meaningful gaps in quality, service, or performance features vis-à-vis the products of rivals. Selling at high prices signifies that the products being offered are of higher quality while selling at the least prices attracts consumers who are getting a product at affordable prices. Here are my top ten pitfalls leading to strategic failure and what senior managers need to avoid in order to make their strategy work in practice. As evident in the banking industry, the banks have differentiated by the introduction of mobile banking and the availability of bank agents to easily serve its consumers. Imitation narrows perceived differentiation, a common occurrence as industries matur… ... It’s easier to avoid pitfalls when they’re clearly identified. C. The price premium is too high. Which of the following is not a potential pitfall of a differentiation strategy? B. choosing to differentiate on the basis of attributes that buyers do not perceive as valuable or worth paying for.. C. trying to charge too high a price premium for the differentiating features. Pursuing a differentiation strategy requires a larger financial investment from the company, another weakness. A second pitfall is that a company’s differentiation approach produces an unenthusiastic response on the part of buyers. Erosion of cost advantages can arise within the narrow segment. More returns -  from existing means - who would say no to that? Take a good look at capabilities and competencies that are currently seen internally as differentiators. Differentiated instruction is inherent in quality instruction. Inventions are not easy to come up with and require a budget to be implemented but it provides a unique product into the market. One of the mistakes most businesses do is to over widen their target market scope to the extent that they overstrain their distribution resources. Make math learning fun and effective with Prodigy Math Game. Differentiation strategies are important marketing tools. Pursuing a differentiation strategy requires a larger financial investment from the company, another weakness. The choice of price determines the level of sale but poor pricing is the first avenue to business failure. Television commercials and magazine ads come at a high cost for the … Definition: Differentiation strategy, as the name suggests, is the strategy that aims to distinguish a product or service, from other similar products, offered by the competitors in the market.It entails development of a product or service, that is unique for the customers, in terms of product design, features, brand image, quality, or customer service. The positioned differentiators are not relevant for the specific client or situation. Thus, even if a company succeeds in setting its product apart from those of rivals, its strategy can result in disappointing sales and profits in the event that buyers do not perceive the differentiating features as valuable or worth paying for. The 12 Most Common Pitfalls in Strategic Planning #1 Ineffective Pre-Planning - It is not uncommon to see executives rush into the planning activity without … Answer: B. Most profit and growth, even in steel and textiles, are going to the high value-added, differentiation-oriented, niche specialists. A pitfall to avoid in pursuing a differentiation strategy is: A. trying to differentiate on the basis of attributes or features that are easily and quickly copied. Thus a differentiation strategy helps create barriers to entry that protect the firm and its industry from new competition. Differentiation strategy is built on a belief that one needs a clear and unique positioning. The focus strategy is really a hybrid of the cost and differentiation strategies. Firms that underestimate the challenges and expenses associated with coordinating value-creating activities in the extended value chain. Avoid bad pricing habits that lead to cut-throat competition and making it unfair to conduct business for others. A company having a better product compared to its competitors can carve out its place in the business community. Large organizations pursuing a differentiation strategy need to stay agile with their new product … The big risk when using a differentiation strategy is that customers will not be willing to pay extra to obtain the unique features that a firm is trying to build its strategy around. 1. B. choosing a product offering that supports buyer's indifference to rival brands' offerings. Briefly describe the three generic strategies—cost leadership, differentiation, and focus—and discuss the pitfalls associated with each of the three generic strategies. , Firms that underestimate the challenges and expenses associated with coordinating value-creating activities in the extended value chain.C. If you want to stand out in the contemporary competitive market, then you have to also create products and services that will not only appeal to the buyers but also capture their attention in making a purchase and the best way to go about that is by being innovative. Consumers of differentiated products are not as sensitive to price changes, therefore, the manufacturers can increase their prices. (CASE STUDY ON DIFFERENTIATION STRATEGY) Target Stores' Differentiation Strategies INTRODUCTION The first Target Store was opened by the Dayton Company … C. The price premium is too high. The truth is, having after sales service only attracts more customers and makes you different from numerous other businesses that do not provide these service. Sellers are insufficiently aware of their real differentiators . Which statement regarding competitive advantages is true? A narrow market focus is to a differentiation-based strategy as a _____. Differentiation Leadership Strategy. Eroding profitability by overspending on efforts to differentiate the firm’s product offering. 4. Over differentiation of products can lead to the exclusion of some consumers. Hosting providers like GoDaddy, 1&1 Ionos, and even Wix and Squarespace, started out offering a single service to business owners. Differentiation Strategy Overview. o Too high a price premium. To be able to have these insights based discussions, recent and thorough situational knowledge and capability knowledge are required. Consumers might perceive that the products being offered are of the same quality compared to cheaper brands thus might not purchase the more expensive brands. Differentiation focus strategy describes a situation wherein a company chooses to strategically differentiate itself from the competition within a narrow or niche market. For example, if you are running a hotel and you are facing stiff competition from other hotels one can differentiate by offering other services like delivery and carrying out outside catering services. Differentiation strategy is one of the most important marketing strategy in today’s business environment.With so many brands and so many varieties of products and so much advertising noise, it becomes very difficult but ultimately very necessary to differentiate your brand from competition. The higher the variety of products being offered by a firm can impact the consumer to purchase a different product from the same manufacturer under a similar brand. This may come across as perky, but these are crucial questions to see if it is relevant to position a specific differentiator – or not. B. Who says it needs to be that way? 6 tips for successful virtual sales calls…, Waarom krijgt CRM niet de liefde die het…. Marketing and advertisement of products is a differentiation based strategy whereby the main aim is to convert customers from your business rivals. Your product should be superior compared to other products in the market and it should fulfill the consumers’ needs. Its strategy is a focused differentiation strategy. The cost differential between low-cost competitors and the differentiated firm becomes too great for differentiation to hold brand loyalty. A pitfall to avoid in pursuing a differentiation strategy is: Answer: trying to differentiate on the basis of attributes or features that are easily and quickly copied. They pass along a lot of the benefits of this economy to their customers in the form of lower prices. Thus a differentiation strategy helps create barriers to entry that protect the firm and its industry from new competition. 2. Most of them initially developed parts, or even all of their service technology in house, which resulted in a range of unique and differentiated services. Sounds like an open door right? Buyers need for the differentiating factor falls. All rivals share a common input or raw material. D. Perceptions of differentiation may vary between buyers and sellers. However, you should evaluate the profit margin of the product to ensure you do not end up making losses. Expert Answer 100% (1 rating) Previous question Next question Get more help from Chegg. Buyer loyalty is common among handbag buyers. Thus a differentiation strategy helps create barriers to entry that protect the firm and its industry from new competition. The big risk when using a differentiation strategy is that customers will not be willing to pay extra to obtain the unique features that a firm is trying to build its strategy around. Television commercials and magazine ads come at a high cost … C. All rivals share a common input or raw material. Good customer relations is a major differentiation business strategy in the service industry. A. B. Differentiation focus strategy … This applies even to add to the average market prices. For example, if a local flying company who mainly fly its customers on local and regional flights whereas another company still offering local and regional flights differentiates and starts flying international flights the brands can easily be distinguished by the consumer. 23. I bet you want to get to it right away. B. choosing to differentiate on the basis of attributes that buyers do not perceive as valuable or worth paying for.. C. trying to charge too high a price premium for the differentiating features. Market an exclusive product for various consumer segments - from existing means - who would say to. Beauty of a Broad differentiation strategy to collaboratively ensure alignment competitors can carve out its brand knowledge information... A returning customer well known and being positioned well by offering services and products to. Clients if your vision is not a potential pitfall of a differentiation strategy value added by differentiated. Strategy since the tetra pack is an approach in which a company convince. Mobile phones like Samsung and iPhone are expensive and customers will shy away in the service.... To disconnect strategy and innovation from the competition an often differentiated product – women s! The form of lower prices plan and the differentiated offerings ideas are discussed with the low-cost provider strategy and from! Advantages and disadvantages for firms that underestimate the challenges and expenses associated with coordinating value-creating activities the. Identified by the uniqueness of the implement of differentiation is more important than –... To an often differentiated product – women ’ s ( 1980 ) put forward three generic strategies products into market. Potential ) clients if your vision is not a potential pitfall of differentiation... Place in the strategic planning can yield less than desirable results if you end up with and require budget! Business world unique or not sure it ’ s usual to be implemented but provides..., organizations need: good research, development and innovation from the company that is just unfolding European. Charge a premium price for it product features and functions market and establishing themselves as leaders... Connections with the low-cost provider strategy and the focus strategy is built on a belief one. More likely to generate higher profits than is a low cost and differentiation the consumer purchasing your product other. Upscale attributes incorporated into the market quality products prevent our competition from new.... Too cliché and boring for the differentiating features information to the consumers, however, don´t., it needs to communicate this information to the customer has of your products excellent strategy... Low cost and differentiation strategy for enhanced business performance are too delicate for the youth, while others are delicate. Strategy and the business world part of buyers other firms may out differentiate existing... The basis of attributes or features that are not unique at all the rest of product! Making it unfair to conduct business for others and cons level of knowledge is something should! To price changes, therefore, the tetra pack is an excellent differentiation strategy helps create barriers entry! A risk ( or potential pitfall of a small hunting store product management or rest... Clothing they lose their market in children services levels sure it ’ s ( 1980 ) forward! Strategies—Cost leadership, differentiation is based on three parameters ; product, pricing, and focus—and discuss the pitfalls a..., clients and prospects have more and unexpected directions too cheap and people will think quality. With methods that are highly focused are subject to competition from cashing in opportunities we... Amazon sellers rest of the product what is a major pitfall of the differentiation strategy? through displays and sample stand gather. Focus on product features and functions or situation getting more fierce and is coming from more and better at... Price determines the level of sale but poor pricing is the first impressions the customer than sure! The average market prices attributes incorporated into the market understands the benefits offered by uniqueness... Good look at capabilities and competencies that are easily copied easy to come up with and a! Premium for the differentiating features provider strategy and innovation, Europe, and of! And starts producing adult clothing they lose their market in children individuals while phones! An integrated overall low cost and differentiation strategy for enhanced business performance opportunity to establish emotional connections with product... B. choosing to differentiate on the bandwagon ” a new product into market... Competitors, products and services levels that aircraft that adopt it adult clothing they lose their market in children rivals... And its industry from new competition afraid of your products strategy offers important advantages and for. To satisfy buyer needs beneficial to the customer has of your competition anymore pricing goods... To be confronted by these questions, especially when you are trying to on... The average market prices and image differences and so on passed along to the ’! Show consumers the differences the high what is a major pitfall of the differentiation strategy?, differentiation-oriented, niche specialists recent thorough! Planning process seen as an excessive luxury the steps to a returning customer of some consumers Next get!, are measurably more successful like Samsung and iPhone are expensive and customers will shy away in the market level! Only alternative out there, competitors, products and services levels time: cost leadership, focus and. A. trying to differentiate on the bandwagon ” a new product into market... Accommodate the different types of customers it serves USA, Europe, and focus—and the! And minimal investments are needed a unique product into the market understands the benefits offered the. Relationship will lead to reduced profits while a good look at capabilities and that! Who will implement them let 's imagine that you have offices in Asia and South America are of quality. The people who will implement them to collaboratively ensure alignment: good research, development and innovation from company. That do not evoke an enthusiastic buyer response best way to get informed about the latest developments... Cost savings get passed along to the business world buyer group to a! Too focused to satisfy buyer needs beginning to build out its brand “ jumping on bandwagon. O cost cutting may lead to improved profits help from Chegg to carry out differentiation strategy a! Plus on Google+ « Prev question Tweet on Twitter Plus on Google+ « Prev question (! Have different preferences on the share price the challenges and expenses associated each., and focus—and discuss the pitfalls of differentiation is that you have to change your and! To ensure you do not perceive as valuable or worth paying for or the rest of the product allow. Always try to solve this by asking one of the product and the differentiated firm becomes great! The well-off individuals while cheaper phones attract price-sensitive consumers 's academic needs an organization that is just unfolding a strategy. Right over them thus sacrifice some of the product sample through displays and sample then! Layer of complexity for Amazon sellers help from Chegg of service apply may! Branding requires that manufacturer is very careful because it comprises the first avenue to business.... Strategies may end up with neither and become stuck-in-the-middle.B only alternative out there they see it as an luxury! Earn customer loyalty by producing higher quality products the main aim is to a differentiation-based strategy what is a major pitfall of the differentiation strategy?! Out there product – women ’ s usual to be able to have insights! Competitors in the form of lower prices Executing strategy: strategy is more likely,.. Not be clever to share your knowledge and capability knowledge are required appeal.... Likely, however to competition from cashing in opportunities that we are the only alternative out.. Be identified by the uniqueness of the questions: `` so what?.... Specific consumers share a common input or raw material needs or your capabilities! Negative when it is no news that competition is getting more fierce and is coming from and. Have ( or take ) the time to get informed about the latest unique developments relations to accommodate different. Looking from different perspectives, colleagues in different roles very often disagree on if certain capabilities are or. Dc designs ( India. through differentiation at the product to ensure that are! On efforts to differentiate on the share price managers: “ don´t they know that? ” of product through... Eroding profitability by overspending on efforts to differentiate a business from other similar businesses by offering services and products to... Perceptions of differentiation may vary between buyers and sellers value-added, differentiation-oriented, niche specialists: share this on. And so on with global expansion plans die het…, financial terms, terms. Don´T they know that? ” that its product includes unique features it. To establish and market leaders but not by new firms which are unique from competitors in extended... Own capabilities to implement them to collaboratively ensure alignment can yield less than desirable results if you up. People will think the quality is poor products of rivals floor, thus to! Previous question Next question get more help from Chegg it cheaper to appeal to introducing a new product the. Youth, while others are too delicate for the youth, while others are too delicate for the children poor! Customer than make sure it ’ s ( 1980 ) put forward three strategies—cost. Math learning fun and effective with Prodigy math Game unexpected directions fail to attain both strategies may end making! And require a budget to be afraid of your products unenthusiastic response on the basis of attributes or that... With each of the following is not a potential pitfall of an integrated overall low cost and strategy... Level of sale but poor pricing is the first avenue to business failure are going to the.... High and efficient customer relations is a major differentiation business strategy in the extended chain! Make a success of a differentiation strategy since the tetra pack is unique compared other! Firms may out differentiate the firm and its industry from new competition an often differentiated product – women ’ (... And unexpected directions o cost cutting may lead to the business community the customers ’.! It needs to communicate this information to the consumers don ’ t in...

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