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Certain Products Such as Gasoline and Diesel Engines Require Very

question 70

Multiple Choice

Certain products such as gasoline and diesel engines require very precise drilling. Tolerances are extremely small, and drill bits that can accomplish the near-perfect drills are very expensive. Unfortunately, the drill bits must be discarded after only a few drills as they sustain distortions that cause them to exceed the tight tolerances. Harold Kushner invented a new method to sharpen high performance metal drill bits to their original specifications. Harold's process meant that companies could extend the life of drill bits. Harold knew that his invention would be a success, but he needed to find the users of high-performance drill bits and direct personal sales calls to them. Using both SIC and NAICS Harold was frustrated because, for example, he could compile only very general lists of potential users and many on the lists would not be users of drill bits at all. Harold needed a service that would provide much more specific information about business firms in order to determine if they were really potential customers. Which of the following services would likely help Harold?

Definitions:

Strategic Group

A concept in strategic management that groups companies within an industry that have similar business models or strategies, allowing for analysis of competition and strategic positioning.

Niche Market

A small, specialized segment of the market with specific needs that are not being addressed by mainstream providers.

Market Share

The portion of a market controlled by a particular company, product, or brand, often expressed as a percentage of total sales in that market.