Competitive Convergence occurs when firms become increasingly similar by copying one another. Which term describes this phenomenon?

• A. Strategy
• B. Competitive Convergence
• C. Variety-Based Positioning
• D. Needs-Based Positioning

Answer: (B)

Competitive convergence happens when firms in the same market copy each other and end up with very similar offerings, strategies, and capabilities. This describes the phenomenon in your prompt perfectly: copying rivals leads to less differentiation and more similar positions across competitors. When differentiation fades, competition often shifts toward price or subtle differentiators, which is a common consequence of convergence.

The other ideas describe different things. Strategy is the overall plan a firm uses to compete, not the process of rivals growing alike. Variety-based positioning focuses on offering a wide range of products to serve different customer groups, rather than mirroring competitors. Needs-based positioning centers on serving distinct customer needs, not on imitation.