An encirclement strategy makes sense when the market is not fragmented and consists of consumers with homogenous needs.

Question

Quizplus · Accepted Answer

An encirclement strategy is typically used in fragmented markets where there are diverse consumer needs and preferences. The goal is to create a product line that can meet the varying needs of different consumer segments and gain a competitive advantage by offering a wider range of options than competitors.

An Encirclement Strategy Makes Sense When the Market Is Not