Question

Which of the following is incorrect regarding how a differentiation strategy can help a firm to improve its competitive position relative to the Porter five forces model?

a. Supplier power is increased, because suppliers will be able to charge higher prices for their inputs.
b. Firms will enjoy high customer loyalty.
c. It reduces buyer power because buyers lack comparable alternatives.
d. By increasing firm margins, it avoids the need for a low cost position.

Answer 1

A. Supplier power is increased, because suppliers will be able to charge higher prices for their inputs

Step-by-step explanation: