Which of the following is FALSE regarding how a differentiation strategy can help a firm to improve its competitive position vis-- Porter's five forces?

Supplier power is increased because suppliers will be able to charge higher prices for their inputs.

It helps a firm to deal with supplier power and reduces buyer power since buyers lack comparable alternatives.

By increasing a firm's margins, it avoids the need for a low cost position.

Firms will enjoy high customer loyalty, thus experiencing less threat from substitutes than its competitors.