A focused differentiation strategy can lead to attractive competitive advantage when ________.
A) industry leaders have chosen not to compete in the niche.
B) buyers are not strongly loyal to a brand and a large number of other rivals are attempting to specialize in the same target segment.
C) the industry has many different segments and market niches, thereby allowing a focuser to pick an attractive niche suited to its resource strengths and capabilities.
D) the target market niche is big enough to be profitable and offers good growth potential.
E) it is costly or difficult for multisegment competitors to meet the specialized needs of the target market niche and at the same time satisfy the expectations of their mainstream customers.
B) buyers are not strongly loyal to a brand and a large number of other rivals are attempting to specialize in the same target segment.
What sets focused (or market niche) strategies apart from low-cost leadership or broad differentiation strategies is a concentration on a narrow piece of the total market. The targeted segment, or niche, can be defined by geographic uniqueness or by special product attributes that appeal only to niche members. This strategy is most attractive when (1) the target market niche is big enough to be profitable and offers good growth potential; (2) industry leaders have chosen not to compete in the niche—focusers can avoid battling head-to-head against the industry's biggest and strongest competitors; (3) it is costly or difficult for multisegment competitors to meet the specialized needs of niche buyers and at the same time satisfy the expectations of mainstream customers; (4) the industry has many different niches and segments, thereby allowing a focuser to pick a niche suited to its resource strengths and capabilities; or (5) few, if any, rivals are attempting to specialize in the same target segment
You might also like to view...
The introduction of new technologies is equally beneficial to all industries
Indicate whether the statement is true or false
Italics are a ______________ form of a font
a. larger b. colored c. reversed d. slanted
Responsibility accounting reports that are given to lower level managers are usually very detailed, in turn, higher level managers will be given a summary report
Indicate whether the statement is true or false
Strategy talk seeks to create __________, such as this is the competitive threat; these are the strategic opportunities; these are the desired innovations.
a. Slogans b. Signposts c. Subjective stressors d. Objective facts