Question

Focusing provides the ability to secure a competitive edge but also itcarries 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 it will not attract new competitors thereby providing excessive market segment profits.
D. The likelihood that a focused company will become so cost efficient it will achieve excessive profits.
E. None of these are risks worth worrying about.

Answer 1

Answer:

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

Explanation:

In the long term,  such focused goods and services might be provided by every supplier, hence the Company (focused on one product) might earn less profits and lose its competitive advantage as more players have entered the competition to produce and sell similar products.