Focusing Provides the Ability to Secure a Competitive Edge,but It

question 37

Multiple Choice

Focusing provides the ability to secure a competitive edge,but it also 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 that it will not attract new competitors,thereby providing excessive market segment profits.
• D)the likelihood that a focused company will become so cost efficient that it will achieve excessive profits.
• E)the possibility that a broad low-cost strategy will always trump a firm's best-cost provider strategy.

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Definitions:

Business Organizations

Entities set up to carry out commercial enterprises, including corporations, partnerships, and sole proprietorships.

Ethical Issue

An identifiable problem, situation, or opportunity that requires a person to choose from among several actions that may be evaluated as right or wrong, ethical or unethical.