Author Question: Comment on the following statement and evaluate it. Differentiating a product separates you from ... (Read 72 times)

bio_gurl · **on:** Jun 29, 2018

Comment on the following statement and evaluate it. Differentiating a product separates you from your competitors so the market will see you as delivering unique benefits. But you don't want to be too different.

What will be an ideal response?

Question 2

It is well documented that traveling on our nation's highways at lower speeds saves money on fuel and reduces accidents. Assume that a driver understands this but is unwilling to drive slower until he observes everyone else doing it.

Can you make a parallel between this attitude and the case where countries will refuse to lower their tariffs unless their trading partners do the same?

mammy1697 · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

If you present a totally new business concept, it's possible that the market won't be able to compare you to your competition, which means your product won't be considered as part of the market or you may lose market share altogether. The lesson is that you want to be different but not too different.

Answer to Question 2

The two arguments are equally flawed. If driving slower is going to save you money on fuel and will reduce your likelihood of having an accident you should drive slower. The same is true of tariff reduction. If reducing tariffs makes your country better off then it doesn't matter whether your trading partners follow your lead. You should cut tariffs anyway.