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

question 98

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. What category 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) Focusing on a more narrowly defined segment and "outfocusing" 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:

Shared Economy

An economic model where assets and services are shared between private individuals, typically via the internet.

Cloud-Based Solutions

Services, software, or infrastructure that are hosted on remote servers accessed via the internet, facilitating scalability and flexibility.

Data Centers

Facilities used to house computer systems and associated components, such as telecommunications and storage systems, mainly for the purpose of collecting, storing, processing, distributing, or allowing access to large amounts of data.

Collaborative Consumption

The shared use of a good or service by a group, an economic model often seen in peer-to-peer exchange platforms.