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

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.