Reference no: EM133064235

"Those running a pizza company know that are important factors for the competition, such as channels where consumers can place their orders, time spent to deliver, and the taste of the pizza. A recent study found that a very successful company in Thailand was the pioneer in using an innovative mobile application as a major tool for consumers to place their orders. The same company was also recognized as one of the fastest in delivering their pizza to customers, with the extra incentive that if they would get late then customers would have a discount. Regarding the taste of pizza, the company preferred to offer the traditional and most popular flavours using very well-known Thai ingredients."

From what we studied about product differentiation, analyse the decisions of the firm described in the text above, and:

i) Explain the type of differentiation (horizontal or vertical) that each decision refers to and why;

ii) Explain the optimal differentiation strategy of the firm for each decision;

iii) Explain why that differentiation strategy that you identify in ii) is actually optimal for the firm.