It is both reasonable and wise for a company to consider shifting away from pursuit of a strategy to strongly differentiate its entry level cameras from the offerings of rival companies and sell them at a premium price when

a. One or more rivals are marketing entry-level cameras with a P/Q rating of 1.5-stars or higher.

b. Managers are frustrated by the company's inability to achieve production costs for entry-level cameras that are the lowest (or very close to the lowest) in the industry.

c. Managers are trustrated by the company's inability to sell enough highly-differentiated entry-level cameras at premium prices to become the market share leader in at least two geographic regions.

d. A big percentage of industry rivals are trying to outcompete each other with copycat differentiation strategies for entry-level cameras that include high P/Q ratings, many models, long warranties, above-average tech support, above-average quarterly advertising, and above-average quarterly promotions.

e. Other companies pursuing a strong differentiation strategy for entry-level cameras have elected to offer buyers just 1 or 2 models (which significantly lowers production costs by $15, $20 per camera assembled)