A Focused Differentiation Strategy Can Lead to Attractive Competitive Advantage

question 29

Multiple Choice

A focused differentiation strategy can lead to attractive competitive advantage when

• A)industry leaders have chosen not to compete in the niche.
• B)buyers are not strongly loyal to a brand and a large number of other rivals are attempting to specialize in the same target segment.
• C)the industry has many different segments and market niches,thereby allowing a focuser to pick an attractive niche suited to its resource strengths and capabilities.
• D)the target market niche is big enough to be profitable and offers good growth potential.
• E)it is costly or difficult for multisegment competitors to meet the specialized needs of the target market niche and at the same time satisfy the expectations of their mainstream customers.

Recognize the various methods for incentivizing employee performance, including piecemeal and hourly compensations.

Analyze the consequences of different compensation schemes during varying economic conditions.

Identify strategies to address agency costs within an organization.

Examine the components and effectiveness of a well-run incentive compensation scheme.

---

Definitions:

Supplier Power

The influence suppliers have over the market or customer base, often due to lack of competition, affecting prices, quality, and availability.

Sourcing Inputs

Involves the process of finding and obtaining the necessary resources, materials, or components required to manufacture a product or provide a service.

Value Capture

A process by which companies retain a portion of the value they create for customers, often through pricing strategies or intellectual property.

Low Cost Strategies

Refers to business approaches aimed at achieving a competitive edge by minimizing operational costs.