I will pay for the following essay In the presence of horizontal product differentiation, there is a tension between the desire to weaken price competition and the desire for increased market share. Explain the statement and evaluate its implications corporate decision-making regarding. The essay is to be 6 pages with three to five sources, with in-text citations and a reference page.
Product differentiation can be defined as a marketing process of the firms within an industry, through which varieties in the products that the firms offer are introduced. Through the process of product differentiation, a particular firm distinguishes its product from that of other firms by intruding certain unique feature in its product.
Another thing to be considered here is that product differentiation not only involves differentiating one’s one particular product from the products of the competitors, but also from ones’ own product ranges. If product differentiation by a firm for any particular type of product becomes successful, then it is said to give the firm a competitive advantage to a large extent over other firms. This happens for the reason that once product differentiation is introduced, buyers start to view the differentiated products as superior a unique than other products. Product differentiation can be visualized as a process which over times helps in improving the quality of commodities or services that any firm offers to its customers through innovations. Introduction of new goods in the market space with completely new features within it shows some kind of radical change which in turn lead to change in share of market as well as industry structure. (Hotelling, 1929)
Product differentiation can be of two types – vertical product differentiation and horizontal product differentiation. Before coming to horizontal product differentiation, it’s important to provide some idea about vertical product differentiation so that it becomes much easier to understand horizontal product differentiation. In a market space where there are a number of goods that can be ordered according to their quality. They are ranked from the highest to the lowest according to their quality. It is therefore very easy to say in this case that one particular good is better than the others. Horizontal differentiation, on