According to Michael Porter,a Focus Strategy Can Erode When

question 75

Multiple Choice

According to Michael Porter,a focus strategy can erode when

• A)the strategy is protected.
• B)the target segment's differences from other segments narrow.
• C)new firms reconstruct the industry.
• D)demand for the product grows and thus attracts new competitors.

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Definitions:

Net Income

Net income is the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Depreciation

The process of allocating the cost of a tangible asset over its useful life.

Net Income After Taxes

The profit a company retains after all operating expenses, interest, taxes, and preferred stock dividends have been deducted from total revenue.

Operating Costs

Operating costs are expenses associated with the maintenance and administration of a business on a day-to-day basis.