Focusing Provides the Ability to Secure a Competitive Edge but Also

question 37

Multiple Choice

Focusing provides the ability to secure a competitive edge but also it carries some risks that will be detrimental to the focused firm,such as

• A) the chance that competitors will not find effective ways to match the focused company's capabilities in serving the market niche.
• B) the potential for the preferences and needs of niche members to shift over time toward mainstream provider product attributes.
• C) the potential for the niche to become so attractive it will not attract new competitors thereby providing excessive market segment profits.
• D) the likelihood that a focused company will become so cost efficient it will achieve excessive profits.
• E) None of these are risks worth worrying about.