A firm's "relevant market for finding opportunities" should be bigger than the present product-market but not so large that it couldn't expand and still be an important competitor.

Question

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A firm's relevant market for finding opportunities should be big enough to find potential new markets and customers, but not so big that it couldn't successfully expand and remain competitive. If the relevant market is too small, the firm may miss out on new opportunities. If it is too large, the firm may spread itself too thin and lose focus on its core competencies.

A Firm's "Relevant Market for Finding Opportunities" Should Be Bigger