A Risk of a Focus Strategy Is That the Needs

question 79

True/False

A risk of a focus strategy is that the needs of the customer within a narrow competitive segment may become more similar to those needs of customers in the whole market.

Know the principles of network design in global supply chains and how different designs affect flexibility and performance.

Understand the role of cash flow duration changes and information flow adjustments in global supply chains.

Gain insight into the importance of flexibility in the supply chain to address demand fluctuations and supply disruptions.

Grasp the fundamental concepts of financial evaluation in supply chains including discounting cash flows and calculating rates of return.

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Definitions:

Inferior Good

A type of good for which demand decreases as the income of the consumer increases, typically because consumers will choose higher quality substitutes when they can afford them.

Demand Curve

A graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period, typically showing a downward slope from left to right.

Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, indicating the good's sensitivity to price changes.