If a firm cannot afford to do both, it will often favor _________ over __________ because a single customer segment will likely require a variety of products, each of which will have to be designed and manufactured.
A)product synergies; market synergies
B)market synergies; product synergies
C)supplier synergies; consumer synergies
D)distributor synergies; supplier synergies
E)manufacturing synergies; marketing synergies

Question

Quizplus · Accepted Answer

When a firm cannot afford to do both, it will often favor market synergies over product synergies because a single customer segment will likely require a variety of products, each of which will have to be designed and manufactured. Market synergies, on the other hand, involve exploiting similarities between customer groups, which can reduce marketing costs and increase efficiency in targeting customers. Therefore, focusing on market synergies can help a firm achieve economies of scale and reduce costs while also increasing its customer base.

If a Firm Cannot Afford to Do Both, It Will