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Which of these is given as a common differential competitive advantage?
AA lower tax rate than the one paid by rival firms
BA strong dealer network built up by the company
CA larger number of employees than rivals employ
DA shorter working week than the one rivals offer
Answer & Solution
Correct answer: B. A strong dealer network built up by the company
1. Differential advantages tend to last longer than cost advantages.
2. Common ones are brand names, a strong dealer network, product reliability, image and service.
3. A dealer network is therefore a recognized differential advantage.
4. Tax rates, headcount and working hours are not features the target market perceives in the product.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 11 "Creating Products and Pricing Strategies to Meet Customers' Needs", section 11.2 Creating a Marketing Strategy_
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