A firm that enters many markets at once runs the risk of spreading its limited management resources too thin.

Question

Quizplus · Accepted Answer

When a firm enters many markets at once, it has to allocate its limited management resources to each market. As a result, the resources are spread too thin, which can negatively impact the firm's performance in all the markets. Therefore, entering many markets at once increases the risk of spreading limited management resources too thin.

A Firm That Enters Many Markets at Once Runs the Risk