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Differentiation: to achieve a competitive advantage by creating a product that customers perceive as different or distinct in some important way. (Budweiser and Sea World)
Diversification: the process of adding new businesses to the company that are distinct from its established operations.
Dominant Design: common set of features or design characteristics. This standard of having a product that needs certain specific complimenting products can be a competitive advantage. Ex) Microsoft and Intel with computers
Explain how a differentiation strategy, or a low-cost strategy protects a firm from each of the five forces.
- Threat of new entrants:
- Power of buyers:
- Power of suppliers: