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:

Utility Function

A mathematical representation of how choices lead to satisfaction levels for consumers, indicating preferences among various sets of goods and services.

Income

Monetary gain derived from work, investments, business, or other sources intended to fund personal expenditures.

Tax

A mandatory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Utility Function

A rephrased definition: A tool in economics to quantify an individual's satisfaction from consuming different bundles of goods and services.