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

question 1

Multiple Choice

The risks of a focused strategy based on either low-cost or differentiation include

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

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Definitions:

Internal Resistance

The resistance inherent to a power source.

Cell

The basic structural, functional, and biological unit of all living organisms, or a device that converts chemical energy into electrical energy in a battery.

Specific Gravity

A dimensionless number that describes the ratio of the density of a substance to the density of a reference substance, typically water at 4 °C.

Acid

A chemical substance that donates protons or accepts electrons and has a sour taste.