Final answer:
To gain a differentiation-based competitive advantage, a company should focus on actions that make its products unique, such as advanced technology, customization, and superior customer service, rather than simply matching competitors' lower prices.
Step-by-step explanation:
To achieve a differentiation-based competitive advantage, a company must engage in actions that set its products apart from competitors. Actions that contribute to product differentiation include investing in cutting-edge camera technology and design, offering customized camera features based on customer preferences, and providing excellent customer service and support. These actions help in making the company's entry-level cameras distinctive and appealing to consumers, by improving either the physical aspects of the product, its intangible aspects, or consumer perceptions of the product.
On the other hand, lowering product prices to match competitors (option C) is unlikely to help a company achieve a differentiation-based competitive advantage. This is because differentiation focuses on distinguishing products from those of competitors, rather than competing on price alone. In fact, competing on price can be counterproductive to building a perception of premium value or uniqueness that is often key to differentiation strategies in markets where economies of scale are small compared to the size of demand or in markets dominated by strong brand names like Coca-Cola or Pepsi.