Many firms tend to adopt a focus or a niche strategy instead of either a cost leadership or a differentiation strategy.

Question

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This statement is true. While cost leadership and differentiation strategies are popular choices for businesses, some firms may choose to focus on a specific niche or market segment to achieve competitive advantage. This approach allows them to tailor their products or services to the needs of a specific group of customers and stand out in a crowded market with a unique value proposition.

Many Firms Tend to Adopt a Focus or a Niche