Choice of product differentiation under circumstance of asymmetric technique level

Holding the opinion of product differentiation may help low-tech competitors overcome inferior position during competition partly under circumstance of asymmetric technique level,this paper analyzed the differentiation mechanism and approved it with the material of Color-TV industry of China.Horizontal differentiation product choice of low-tech competitors contributes to distinguish their product from those of high-tech competitors on one hand,which can reduce the attention to vertical difference of products of consumers,therefore reduces the monopoly ability of high-tech products;while on the other hand,it can also contributes to distinguish products of low-tech competitors by reduces mutual substitution,which reduce the severity of price competition.Horizontal differentiation product choice also settles the problem of no optimal choice in economics means for low-tech competitors when they try to raise the technique level,which offer a explanation space in theoretical for relatively technique progress of low-tech competitors.