Focusing provides the ability to secure a competitive edge,but it also carries some risks that will be detrimental to the focused firm,such as
A) the chance that competitors will not find effective ways to match the focused company's capabilities in serving the market niche.
B) the potential for the preferences and needs of niche members to shift over time toward mainstream provider product attributes.
C) the potential for the niche to become so attractive that it will not attract new competitors,thereby providing excessive market segment profits.
D) the likelihood that a focused company will become so cost efficient that it will achieve excessive profits.
E) None of these are risks worth worrying about.

Question

Quizplus · Accepted Answer

Focused differentiation strategies are keyed to offering carefully designed products or services to appeal to the unique preferences and needs of a narrow,well-defined group of buyers (as opposed to a broad differentiation strategy aimed at many buyer groups and market segments).The first major risk is the chance that competitors will find effective ways to match the focused firm's capabilities in serving the target niche.The second risk of employing a focus strategy is the potential for the preferences and needs of niche members to shift over time toward the product attributes desired by the majority of buyers.

Focusing Provides the Ability to Secure a Competitive Edge,but It