Hueblue Software, an application provider to the gaming industry, decided to enhance its portfolio by developing motion-control-enabled games for the mobile gaming industry. In this scenario, which competitive strategy is Hueblue Software implementing?

a) establishment of alliances

b) product differentiation

c) raising barriers to market entry

d) locking in buyers

d) locking in buyers

Explanation:

If Hueblue Software has decided to enhance its portfolio by developing motion-control-enabled games for the mobile gaming industry, In this scenario, the competitive strategy is Hueblue Software implementing is locking in buyers.

In economics, vendor lock-in or customer lock-in, is a competitive strategy that makes a customer more reliant on a particular vendor for products and services. Furthermore, customers are unable to use another vendor without substantial switching costs. These costs are referred to as 'lock-in costs'.

In the scenario, Hueblue initially supplied only software, but has moved on to supplying products: motion-control-enabled-games. This will make customers in the game industry to become more reliant on this vendor because he is now offering more, and they will loose more if they were to switch to another vendor. Hueblue has technically 'locked in buyers'.

Answer: Product differentiation.

Explanation:

Product differentiation is a business strategy used by companies/individuals, where in order to gain a competitive advantage, the company/individual would offer products that stands out from the available products in a market. The development of motio-control-enabled games by Hueblue software is form of market differentiation, as the software company are the only ones that can design such type of games.