A large, established organization pursues a broad range of resources in many niches. This company created a new niche in which a new firm could enter and survive. The new firm will likely use which of the following strategies?

Question

Quizplus · Accepted Answer

The new firm should use K-specialist strategy, which involves focusing on one specific niche and becoming an expert in it. This allows the new firm to differentiate itself from the established organization that pursues a broad range of resources in many niches. By positioning itself as a specialist, the new firm can attract customers who are looking for expertise in that specific niche. This strategy is likely to be more successful than R-specialist or R-generalist strategies, which focus on creating new resources or specializing in a broad range of resources, respectively. K-generalist strategy is also not suitable because it involves pursuing a broad range of resources, which may lead to competition with the established organization.

A Large, Established Organization Pursues a Broad Range of Resources