Question 16 If a firm is implementing a differentiation strategy, it should:

a.find unique ways to set itself apart from rivals.

b.specialize in unique value-chain activities.

c.design product features and services that buyers want--even if they must pay extra to get them.

d. diversify into a variety of industries.

e. all of the above.

Question 17 First-mover disadvantages (or late-mover advantage) arise when

a. the costs of pioneering are much higher than being a follower and only negligible learning/experience curve benefits accrue to the pioneer.

b. rapid market evolution gives fast-followers an opening to leapfrog the pioneer with next-generation products of their own.

c. the pioneer's products are somewhat primitive and do not live up to buyer expectations, allowing clever followers to win disenchanted buyers with better-performing products.

d. the marketplace is skeptical about the benefits of a new technology or product being pioneered by a first-mover.

e. all of these.