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

question 24

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 toward 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.

---

Definitions:

OSHA

Is both the act that authorized the U.S. government to create various standards regarding occupational safety and health and the administrative agency that enforces those standards.

Worker Safety

Refers to the measures and policies implemented to protect employees from hazards and risks associated with their job environment.

Collective Bargaining

Is the process by which managers and union leaders negotiate acceptable terms and conditions of employment for those workers represented by the unions.

Nonunionized

Refers to a workplace or workforce that is not represented by a labor union or does not engage in collective bargaining.