Which one of the following does not represent market circumstances that make a focused low-cost or focused differentiation strategy attractive?
A) when it is costly or difficult for multisegment competitors to meet the specialized needs of the target market niche and at the same time satisfy the expectations of their mainstream customers
B) when the industry has many different segments and market niches,thereby allowing a focuser to pick an attractive niche suited to its resource strengths and capabilities
C) when industry leaders have chosen not to compete in the niche
D) when the target market niche is big enough to be profitable and offers good growth potential
E) when buyers are not strongly brand loyal and a large number of other rivals are attempting to specialize in the same target segment

Question

Quizplus · Accepted Answer

What sets focused (or market niche) strategies apart from low-cost leadership or broad differentiation strategies is a concentration on a narrow piece of the total market.The targeted segment,or niche,can be defined by geographic uniqueness or by special product attributes that appeal only to niche members.This strategy is most attractive when: (1) the target market niche is big enough to be profitable and offers good growth potential; (2) industry leaders have chosen not to compete in the niche-focusers can avoid battling head-to-head against the industry's biggest and strongest competitors; (3) it is costly or difficult for multisegment competitors to meet the specialized needs of niche buyers and at the same time satisfy the expectations of mainstream customers; (4) the industry has many different niches and segments,thereby allowing a focuser to pick a niche suited to its resource strengths and capabilities; or (5) few,if any,rivals are attempting to specialize in the same target segment.

Which One of the Following Does Not Represent Market Circumstances