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

question 57

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 chance that competitors will find effective ways to match the focused firm's capabilities in serving the target niche.
• 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 choices are correct.

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