Organizations Use Focus Strategies to Seek Gaps in Broad Market

question 9

Multiple Choice

Organizations use focus strategies to seek gaps in broad market segments or to find gaps in competitors' ranges. Thus, focus strategies help to seek out unfulfilled market needs. The focused operator then concentrates all value chain activities on a narrow range of offerings. Focus strategies can be oriented towards being the lowest cost producer for a particular segment (for example Aldi, in the supermarket sector) or towards supplying a differentiated offering for a narrow target segment willing to pay a higher price (for example, Vans, in the trainer market) .

• A) Differentiation.
• B) Cost-leadership.
• C) Focus.
• D) Generic.

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Definitions:

Settle

To resolve or reach an agreement on a matter, dispute, or financial transaction.

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A dilated, saclike, distensible portion of the alimentary canal below the esophagus and before the small intestine.

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A hormone produced by the pineal gland that regulates sleep-wake cycles, often used as a dietary supplement to treat insomnia.

Pineal Gland

A small endocrine gland in the brain that produces the hormone melatonin, which regulates sleep patterns.