The Risks of a Focused Strategy Based on Either Low-Cost

question 15

Multiple Choice

The risks of a focused strategy based on either low-cost or differentiation include 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 multi-segmented rivals to enter.

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Definitions:

Netherlands

A country located in Northwestern Europe, known for its flat landscape, extensive canal systems, tulip fields, windmills, and cycling routes.

Germany

A country in Central Europe known for its rich history, culture, and contributions to the world in various fields like technology, science, and the arts.

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