What is the primary disadvantage of employing a selective specialization strategy?

Question

Quizplus · Accepted Answer

The primary disadvantage of employing a selective specialization strategy is that the organization cannot achieve either marketing or production economies of scale. This is because the organization is only focused on a narrow range of products or services, which limits its ability to spread its fixed costs over a larger volume of output. As a result, the cost per unit of output is higher, making it difficult for the organization to compete on price.

What Is the Primary Disadvantage of Employing a Selective Specialization