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.

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Definitions:

Potential Project

A project that has the possibility to be developed or realized in the future, often in the planning or proposal stages.

Ballet Troupe

A group of ballet dancers who perform together, often as part of structured productions or tours.

Dyads

A group consisting of two persons, often used in the context of interpersonal relationships, communication studies, and social psychology.

Entitativity

The perception or quality of being a distinct entity, often used in social psychology to discuss how individuals perceive groups as coherent, unified wholes.