Which of the Following Best Describes the Foothold Strategy

question 20

Multiple Choice

Which of the following best describes the foothold strategy?

• A) It refers to the idea of creating a new, untapped market rather than competing with rivals in an existing market.
• B) It involves combining ideas from existing businesses in order to create a new business.
• C) It involves introducing a lower-end brand to protect the firm's market share without devaluating the firm's existing brands.
• D) It involves a firm intentionally establishing a small position within a market in which it does not yet compete.
• E) Such a strategy conflicts with, and threatens to replace, traditional approaches to competing within an industry.

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Definitions:

Labor

Labor refers to the human effort, both physical and mental, used in the production of goods and services.

Output

The quantity of goods or services produced in a given time period by a firm, industry, or economy.

Cost

Cost pertains to the value of economic resources used in the production of goods or services, often reflected in terms of money expended.

Units

Basic quantities or measurements, such as pieces or portions, used in economic analyses to quantify variables.