Question

The risks of a focus strategy include: a. decisions by focused competitors to use their resources to serve a wider range of customers' needs. b. a competitor's ability to use its core competencies to outfocus the focuser by serving an even more narrowly defined segment. c. decisions by industry-wide competitors to use their resources to serve a wider range of customers' needs than the focuser has been serving. d. a competitor's ability to use its core competencies to outfocus the focuser by serving an even more broadly defined segment.

Answer 1

Answer:

The answers in this case would be option b. or a competitor's ability to use its core competencies to out-focus the focuser by serving an even more narrowly defined segment.

Explanation:

• In Economics,focus strategy is a market strategy implemented by individual firms or companies or the focusers to out compete the market rivals or counterparts.
• Focus strategy mainly implies a narrow or specific focus on any particular target consumer group or segment and fulfill the needs and demands of that particular market or consumer segment through product differentiation with the primary objective to enhance revenue or gain market cost advantage and increase future profitability in the process.Therefore,under focus strategy the individual firms or companies are able to better emphasize on any particular or specific target market or customer group and consequently enhance market share.
• Now,one of the risks involved in the focus strategy is that the market competitors can also narrow down on sub-segments within the target market segment chosen by the focuser and serve the specific consumers within that specific sub-segment which can reduce the market share of the focuser.Therefore,it can jeopardize the initial objective of the focus strategy which is to enhance market share by focusing on particular target market segment.