Market Circumstances That Make a Focused Low-Cost or Focused Differentiation

question 53

Multiple Choice

Market circumstances that make a focused low-cost or focused differentiation strategy attractive are characterized by

• A)a target market niche that is too small to be profitable and offers low growth potential.
• B)an industry has few or no segments and market niches, thereby precluding the choice of an attractive niche suited to a company's resource strengths and capabilities.
• C)high costs or increased difficulty for multisegment rivals to meet the specialized needs of the target market niche and at the same time satisfy the expectations of their mainstream customers.
• D)intense competition from industry leaders in the niche or focused segment.
• E)few, if any, rivals are attempting to specialize in the same target segment.

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Definitions:

Competitive Advantage

A unique attribute or position that allows a company to outperform its competitors.

Customer's Tastes

Customer's tastes refer to the preferences, inclinations, and discretionary choices of consumers that influence their purchasing behavior and affect how businesses market and sell products or services.

Competitive Advantage

Competitive advantage is a condition or circumstance that puts a company in a favorable or superior business position compared to its competitors, often through unique resources, capabilities, or strategies.

Extra Services

Additional services provided beyond the basic offerings, often for an extra fee.