The chief disadvantage to a firm that decides to follow a product specialization strategy in selecting target markets is that
A) logistics can become a nightmare.
B) competitors can easily copy any new product introductions.
C) no synergy exists.
D) the product may be supplanted by an entirely new technology.
E) e-commerce becomes difficult for the company.

Question

Quizplus · Accepted Answer

The chief disadvantage of following a product specialization strategy is that the product may be supplanted by an entirely new technology, making it obsolete and irrelevant in the market. This can lead to a loss of market share and profits for the firm.

The Chief Disadvantage to a Firm That Decides to Follow