Market niching is profitable because the company ________
A) copies or improves on the leader's products and programs, usually with much less investment
B) bears the cost of developing new products and markets, expanding distribution, and educating the market
C) knows the needs of the target customer segment better than other firms that casually attempt to sell to the same segment
D) either keeps its manufacturing costs and prices low or its product quality and services high
E) can achieve economies of scale much faster by selling the same product to the global market
C
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When Amazon’s managers engage in the process of developing a list of questions to evaluate their company’s internal situation, which question does not address the task of evaluating Amazon’s resources and competitive position?
a. What strategic issues and problems merit front-burner managerial attention at Amazon? b. How well is Amazon’s present strategy working? c. Are Amazon’s sales and earnings increasing or decreasing? d. Which are Amazon’s least and most profitable geographic market segments? e. How do Amazon’s value chain activities impact its cost structure and customer value proposition?