Focused strategies keyed either to low cost or differentiation are especially appropriate for situations where
A)the market is composed of distinctly different buyer groups who have different needs or use the product in different ways.
B)most other rival firms are using a best-cost producer strategy.
C)buyers have strong bargaining power and entry barriers are low.
D)most industry rivals have weakly differentiated products.
E)most industry participants are also using a focused differentiation strategy.

Question

Quizplus · Accepted Answer

Focused strategies are designed to target specific buyer groups with specialized needs or preferences. If the market is composed of distinctly different buyer groups who have different needs or use the product in different ways, a focused strategy is especially appropriate since it allows the firm to tailor its offerings to meet the specific needs of these groups. A low cost or differentiation focus can help a firm gain a competitive advantage in these segments by providing a unique value proposition that meets the needs of these groups better than its rivals.

Focused Strategies Keyed Either to Low Cost or Differentiation Are