When evaluating relevant market segments, cost estimates are important to determine if an organization entering a particular segment can operate at costs equal to or below those of competitors.

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Cost estimates are crucial in determining if an organization entering a market segment can compete with its rivals. Organizations can only operate profitably if their expenses are equal to or lower than those of their rivals. As a result, cost estimates are critical in making informed decisions about which segments to enter and how to succeed in them.

When Evaluating Relevant Market Segments, Cost Estimates Are Important to Determine