A company's broad differentiation strategy fails $($in the sense of not significantly boosting profitability or resulting in a competitive advantage$)$ whenever

buyers don't place much value on the brand's uniqueness and$/$or whenever the differentiating features of a company's product$/$service offering are easily copied or matched by rivals.

a company is unable to charge a higher price than one or more of its rivals are able to charge.

the differentiating attributes of its product do not lead to greater buyer loyalty to its brand than to the brands of certain other of its competitors.

it results in a product offering differentiated mainly on superior customer service rather than superior quality.

a company is unable to earn bigger profit margins than most all of its rivals.