A company using a narrow scope in its business strategy is
A) following a cost leadership business strategy.
B) focusing on a broad array of geographic markets.
C) limiting the group of customer segments served.
D) decreasing the number of activities on its value chain.

Question

Quizplus · Accepted Answer

A company using a narrow scope in its business strategy is limiting the group of customer segments served. This is also known as a focused differentiation strategy, where the company focuses on serving a specific niche market with unique needs and preferences. It is different from a cost leadership strategy (A), which focuses on reducing costs to offer products at a lower price than competitors, and a broad array of geographic markets (B), which is a characteristic of a global business strategy. It is also different from decreasing the number of activities on its value chain (D), which is a characteristic of a lean business strategy.

A Company Using a Narrow Scope in Its Business Strategy