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Focusing carries several risks, one of which is the a) chance that niche customers will bargain...

Focusing carries several risks, one of which is the

a) chance that niche customers will bargain more aggressively for good deals than customers in the overall marketplace.

b) chance that competitors will find effective ways to match the focused firm's capabilities in serving the target market.

c) potential for the segment to be highly vulnerable to economic cycles.

d) potential for the segment to become too specialized for other multi-segmented rivals to enter.

e) inability of a company to compete industry-wide.

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Answer #1

Option 'B' is correct.

Focusing caries several risks, one of which is Chance that competitors will find effective ways to match the focused firm's capabilities in serving the target market.

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