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The Differentiation Strategy between Competitors under the Asymmetric Technological Background in China

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3 Author(s)
Huayao Zhang ; College of Business and Administration, Zhejiang University of Technology, Hangzhou, 310032, China; Institute of Economic Research, Hitotsubashi University, Tokyo, 186-8601, Japan. zhanghy@zjut.edu.cn ; Xiaokun Shi ; Ranzhe Jing

Different differentiation strategies was applied by different competitors at Chinese asymmetric technical background. For the upper-side multinational enterprises to apply a vertical horizontal differentiation are good choice for keeping in leadership state in technical; while for the lower-side domestic competitors horizontal differentiation strategy can not only reduce consumer's attention to vertical difference, but also reduce the price competition pressure from other domestic counterparts. Horizontal differentiation strategy is also an outlet for lower-side domestic competitors to step out the dilemma in relatively technical progress. But on the other hand horizontal differentiation strategy can not eliminate competition intensity completely. Too much differentiation in a market may also increase the possibility of competitors dropping out.

Published in:

2007 International Conference on Service Systems and Service Management

Date of Conference:

9-11 June 2007