Focusing provides the ability to secure a competitive edge

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Reference no: EM131421522

Focusing provides the ability to secure a competitive edge, but it also carries some risks that will be detrimental to the focused firm, such as

A- the chance that competitors will not find effective ways to match the focused company's capabilities in serving the market niche.

B- the potential for the preferences and needs of niche members to shift over time toward mainstream provider product attributes.

C- the potential for the niche to become so attractive that it will not attract new competitors, thereby providing excessive market segment profits.

D- the likelihood that a focused company will become so cost efficient that it will achieve excessive profits.

E- None of these are risks worth worrying about.

Reference no: EM131421522

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