The risks of a focused strategy based on either low-cost or differentiation include
A) the chance that niche customers will bargain more aggressively for good deals than customers in the overall marketplace.
B) the potential for the preferences and needs of niche members to shift over time toward many of the same product attributes and capabilities desired by buyers in the mainstream portion of the market.
C) the potential for the segment to be highly vulnerable to economic cycles.
D) the potential for segment growth to race beyond the production or service capabilities of incumbent firms.
E) All of these.
Correct Answer:
Verified
Q24: The pitfalls of a differentiation strategy include
A)
Q28: Perceived value and signaling value are often
Q28: In which one of the following market
Q31: Broad differentiation strategies are well-suited for market
Q31: Easy-to-copy differentiating features
A)do not offer the promise
Q33: The advantages of focusing a company's entire
Q34: Companies can pursue differentiation from many angles
Q46: What sets focused (or market niche)strategies apart
Q54: The chief difference between a low-cost leader
Q56: Which of the following is not one
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