What is the primary disadvantage of employing a selective specialization strategy?

Question

Quizplus · Accepted Answer

Selective specialization strategy involves targeting a narrow segment of the market where the organization can effectively compete. However, this strategy poses a disadvantage of not being able to achieve marketing or production economies of scale due to limited product offerings and volumes. This implies that the organization will experience increased costs per unit produced and may have difficulties in competing with other firms that produce on a larger scale.

What Is the Primary Disadvantage of Employing a Selective Specialization