Which of the Following Is Not a Potential Pitfall of a Focus

question 63

Multiple Choice

Which of the following is not a potential pitfall of a focus strategy?

• A) Erosion of cost advantages can arise within the narrow segment.
• B) Product/service offerings that are highly focused are subject to competition from new entrants.
• C) Focusers can become too focused to satisfy buyer needs.
• D) All rivals share a common input or raw material.

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Definitions:

Differential Revenue

The additional revenue that is generated from choosing one alternative over another in decision-making processes.

Differential Analysis

The process of comparing the financial differences between alternative business decisions or scenarios, focusing on costs and benefits that change between options.

Differential Cost

The difference in cost between two alternative decisions or changes in output levels.

Differential Cost

The difference in cost between two business decisions, focusing on how costs change under different alternatives.