Which of the following are risks of a focused low-cost or focused differentiation strategy?
a. Buyers incur high costs in switching from one brand to another within the niche market.
b. Competitors find effective ways to match the focused firm's capabilities in serving the target niches.
c. The segment becomes so attractive that competitors move in, intensifying rivalry and negatively impacting profits.
d. The preferences and needs of niche members shift toward the product attributes desired by the majority of buyers.
Answer:
b. Competitors find effective ways to match the focused firm's capabilities in serving the target niches.
c. The segment becomes so attractive that competitors move in, intensifying rivalry and negatively impacting profits.
d. The preferences and needs of niche members shift toward the product attributes desired by the majority of buyers.
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