One of the benefits of pursuing a differentiation strategy when it comes to the power of suppliers is that it results in costs that increase above acceptable thresholds.
Differentiation strategy are strategies employed by businesses to distinguish their product from competitors. The aim of differentiation strategy is to create brand loyalty among customers.
The advantage of differentiation strategy is that it enabled increase in the perceived value of goods and services so that customers will pay a higher price for additional features.
Hence, product differentiation results in costs that increase above acceptable thresholds.
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