The Risks of a Focused Strategy for a Company Like

question 64

Multiple Choice

The risks of a focused strategy for a company like Canada Goose are the

• A)chance that niche customers will bargain more aggressively for good deals than customers in the overall marketplace.
• B)potential for the preferences and needs of niche members to shift over time toward product attributes desired by buyers in the mainstream portion of the market.
• C)potential for the segment to be highly vulnerable to economic cycles.
• D)potential for segment growth to race beyond the production or service capabilities of incumbent firms.
• E)potential for the segment to become too specialized for other multisegmented rivals to enter.

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Definitions:

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and net income.

Accounts Receivable

Outstanding payments due to a company from its clients for delivered goods or services awaiting compensation.

Direct Method

A cost allocation method that assigns service department costs directly to production departments without intermediate steps.

Income Statement

A financial statement that shows a company's financial performance over a specific period, detailing revenues, expenses, and net income.