Burberry's competitive advantage is through its differentiation strategy. What risk should Burberry remain aware of?

a. Customers might decide that the price differential between the differentiator's product and the cost leader's product is too large.

b. Customers may decide that it is "too different".

c. Burberry may run out of creative ideas to remain differentiated.

d. There are no risks to differentiation strategies.

c. Burberry may run out of creative ideas to remain differentiated.

Explanation:

After considering the Burberry story, which business-level strategy is the company attempting to pursue?

a. Focused Differentiation

b. Focused Low Cost

c. Broad Low Cost

d. Integrated Differentiation and Low Cost

Burberry's competitive advantage is through its differentiation strategy. What risk should Burberry remain aware of?

a. Customers might decide that the price differential between the differentiator's product and the cost leader's product is too large.

b. Customers may decide that it is "too different".

c. Burberry may run out of creative ideas to remain differentiated.

d. There are no risks to differentiation strategies.

In addition to the new designer, Burberry also stepped up its involvement in social media, relationships with style magazines and connecting with high-profile trendsetters. This is an example of which concept?

a. Streamlining processes to take out unnecessary steps

b. Customization of the product offering to reach different market segments

c. Reaching efforts focused on building relationships and adding customers

d. Increasing customer retention and reducing customer churn