When A Company Establishes Technology Leadership By Pioneering Unique Products Or Services That Command Premium Prices?

Question

When A Company Establishes Technology Leadership By Pioneering Unique Products Or Services That Command Premium Prices?

2 Answers

Answer Question

Answer 1

The rest of this question asks what the company benefited from: Differentiation strategy, high price strategy, high cost strategy, diversification strategy, or low cost strategy.

Differentiation Strategy

Differentiation strategy is the process by which a company distinguishes their product or service from others. They do so in order to make it more attractive to the target market. They make it different from competitors' and their own products on offer.

High Price Strategy

This is the type of strategy in which the prices are set higher by the company. It is often in conjunction with a low price or cost strategy in which the price was hiked up in order to provide the product at a 'discount' to the consumer, making the price look more attractive than it really is.

Answering the Question

Based on an examination of the various answers provided, it is most likely Differentiation Strategy. For example diversification is where an increase in profitability occurs through an increase in sales volume from new products or services. It can also occur in new markets. From the description in the question, we are being asked about unique products or services that increase the price. Given the question it is most likely differentiation strategy since that is to distinguish a product from another on the market including the companies own products.

With this type of strategy the product is different and thus one can try to increase the premium price from that of other products on the market. This is of course if the rest of the question is as we have found and not something entirely different. It does seem to be the most likely answer given the information we have found.

Answer 2

When a company establishes technology leadership by pioneering unique products or services that command premium prices, it has benefited from a:
A. High-price strategy
B. High-cost strategy
C. Differentiation strategy
D. Low-cost strategy
E. Diversification strategy