Focusing the ability can secure a competitive edge but also carries some risks that could be detrimental to the focused firm, such as
A)the likelihood that a focused company will become so cost efficient it will achieve excessive profits.
B)the potential for the preferences and needs of niche members to shift over time toward mainstream provider product attributes.
C)the potential for the niche to become so attractive it will not attract new competitors thereby providing excessive market segment profits.
D)the potential for technological advances to favor only low-cost providers.
E)the likelihood that a focused company will become so cost inefficient it will achieve excessive profits.

Question

Quizplus · Accepted Answer

Focusing on a niche market may result in the company becoming too specialized in their product offerings that may lead to the preferences and needs of the niche members changing over time towards mainstream offerings. This could potentially lead to a decrease in sales and a loss of competitive edge. The other options are either incorrect or do not apply to the risks associated with a focused strategy.

Focusing the Ability Can Secure a Competitive Edge but Also