Focused Differentiation Occurs When ________

question 50

Multiple Choice

Focused differentiation occurs when ________.

• A) a better product is provided within an industry segment
• B) there is limited competition in an industry
• C) the customers are highly price-sensitive
• D) product quality improves across an entire industry

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Definitions:

Government Regulation

The laws and rules established by government bodies to control and guide the activities of businesses and individuals.

Herfindahl Index

A measure of the concentration and competitiveness of an industry; calculated as the sum of the squared percentage market shares of the individual firms in the industry.

Market Share

The proportion of total sales or business a company secures within a particular market, compared to its competitors.

Conglomerate Merger

A business combination of two or more unrelated companies, usually to diversify product lines or markets.