In General, a Company Should Enter Only Segments in Which

question 104

Essay

In general, a company should enter only segments in which it can ________ and ________.
offer lower prices; ship faster
offer superior value; gain advantages over competitors
offer superior value; ship faster
gain advantages over competitors; offer new products
identify behaviours; understand spending power

---

Definitions:

Royalties

Payments made by one party to another for the right to use intellectual property, such as music, books, or patents, on an ongoing basis.

Creative Destruction

Creative destruction is an economic concept describing the process by which new innovations lead to the demise of older technologies or businesses, thereby fostering growth and economic progress.

Economic Profits

The difference between total revenue and total costs, including both explicit and implicit costs, indicating the financial gain in excess of the opportunity costs.

Production Costs

Expenses incurred in the process of creating or manufacturing a product, including materials, labor, and overhead costs.