The following are potential pitfalls of a focus strategy, except
A) erosion of cost advantages within the narrow segment.
B) all rivals share a common input or raw material.
C) even product and service offerings that are highly focused are subject to competition from new entrants and from imitation.
D) focusers can become too focused to satisfy buyer needs.

Question

Quizplus · Accepted Answer

A focus strategy involves concentrating on a narrow customer segment and tailoring the business's offerings to this group more effectively than competitors. The pitfalls mentioned in options A, C, and D directly relate to the vulnerabilities of a focus strategy. However, option B, which mentions all rivals sharing a common input or raw material, is not a pitfall specific to a focus strategy. This situation could affect companies regardless of their adopted competitive strategy (cost leadership, differentiation, or focus) and thus is not a pitfall exclusive to the focus strategy.

The Following Are Potential Pitfalls of a Focus Strategy, Except