Disadvantages

Imitation
There is a chance of imitation when a company has achieved a firm
position in it industry. This may reduce their market share if
competitors succeed in imitating Ben & Jerry’s strategy and there is
also a risk they will be losing their competitive advantage. A
differentiated product becomes less valuable if imitation by rivals
causes customers to perceive that competitors offer essentially the
same good or service, but at a lower price (Hitt, Ireland, & Hoskisson,
2009). Therefore Ben & Jerry’s are still on not in a risk free position
even applying the differentiation strategy. They will lose their market
share and competitive advantage if the imitation is successful.
Difficult To Sustain
Differentiation does not guarantee competitive advantage, especially if
standard products sufficiently meet customer needs. The unique
product of Ben & Jerry’s may not be valued highly enough by
customers to justify the higher price. The customer experience can
narrow customers’ perceptions of the value of a product’s
differentiated feature (Hitt, Ireland, & Hoskisson, 2009). By example, a
customer that has positive experience with less expensive ice cream
may lead to a conclusion that Ben & Jerry’s product are not worth of
extra cost. Ben & Jerry’s must continue to meaningfully differentiate
their product from time to time for customers at a price they are willing
to pay.

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- Fall '19
- Marketing, Brand, new product development, Ben, ice cream