Suppose Another Firm Found a Way to Offer IKEA's Customers

question 109

Multiple Choice

Suppose another firm found a way to offer IKEA's customers (young buyers interested in stylish furniture at low cost) additional sources of differentiation while charging the same price or to provide the same service with the same sources of differentiation at a lower price.Which of the following categories of competitive risk to a focus strategy would this be?

• A) An industry-wide competitor decides that the market segment served by IKEA is worth entering.
• B) A competitor may focus on a more narrowly defined segment and thereby "out-focus" the focuser.
• C) The needs of the customers in this narrow segment have become more similar to those of industry-wide competitors.
• D) Experience can narrow customer's perceptions of value of the firm's differentiated features.

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Definitions:

Subjective Measures

Methods of assessment based on personal opinions, interpretations, points of view, or judgments rather than objective data or criteria.

Objective

A specific result that a person or system aims to achieve within a timeframe and with available resources.

Subjective

Based on or influenced by personal feelings, tastes, or opinions rather than objective facts.

Organizational Objectives

The defined goals and aims that an organization seeks to achieve in order to fulfill its mission and attain long-term success.