Suppose Another Firm Found a Way to Offer IKEA's Customers

question 98

Multiple Choice

Suppose another firm found a way to offer IKEA's customers (young buyers interested in stylish furniture at low cost) additional sources of differentiation while charging the same price or to provide the same service with the same sources of differentiation at a lower price. What category of competitive risk to a focus strategy would this be?

• A) An industry-wide competitor decides that the market segment served by IKEA is worth entering.
• B) Focusing on a more narrowly defined segment and "outfocusing" the focuser.
• C) The needs of the customers in this narrow segment have become more similar to those of industry-wide competitors.
• D) Experience can narrow customer's perceptions of value of the firm's differentiated features.

Understand the taxation and accounting for futures trading gains and losses.

Distinguish between contango and backwardation in futures markets.

Understand the concept and utility of market-product grids in market segmentation and targeting.

Recognize the criteria for selecting target markets and the importance of market size, compatibility with company goals, and accessibility.

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Definitions:

One Page

A concise document or overview that typically summarizes a complex topic or plan on a single page for clarity.

Back-Of-The-Napkin Plan

An informal or preliminary sketch of a plan or idea made spontaneously, often on a napkin or similar surface.

Feasibility Study

An analysis and evaluation of a proposed project to determine if it is technically feasible, financially viable, and legally permissible.

Completeness

The state or condition of having all parts or elements; lacking nothing.