Which of the Following Is a Defining Characteristic of a Focused

question 126

Multiple Choice

Which of the following is a defining characteristic of a focused differentiation strategy?

• A) It offers a unique product to a special market segment.
• B) It seeks the lowest costs of operations within a special market segment.
• C) It analyzes business opportunities according to market growth rate.
• D) It focuses on substantial penetration of expanding markets.
• E) It involves decreasing the size of operations.

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Definitions:

Opportunity Cost

The value of the best alternative that is foregone by choosing a particular action or decision, important in evaluating the cost of choices.

Alternative

An option among a set of choices in decision-making scenarios.

Total Costs

The sum of all expenses incurred by a business in producing goods or services, including fixed and variable costs.

Prime Cost

Direct materials cost plus direct labor cost.