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Short Answer Product features are often the focus of product differentiation efforts

Management

Short Answer Product features are often the focus of product differentiation efforts. Yet product features are among the easiest-to-imitate bases of product differentiation and thus among the least likely bases of product differentiation to be a source of sustained competitive advantage. This appears paradoxical. How can you resolve this paradox?

Should a firm pursue differentiation strategy in an industry where customers are very price sensitive? As low prices are often supported by low costs, in such a market, what can a differentiation strategy hope to achieve? Support your answer 

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