Question

Focused strategies keyed either to low cost or differentiation are especially appropriate for situations where:

A. the market is composed of distinctly different buyer groups who have different needs or use the product in different ways.
B. most other rival firms are using a best-cost producer strategy.
C. buyers have strong bargaining power and entry barriers are low.
D. most industry rivals have weakly differentiated products.
E. most industry participants are also using a focused differentiation strategy.

Answer 1

Focused strategies keyed either to low cost or differentiation are especially appropriate for situations where the market is composed of different buyer groups, most other rival firms are using a best-cost producer strategy, or most industry participants are using a focused differentiation strategy.

Step-by-step explanation:

Focused strategies keyed either to low cost or differentiation are especially appropriate for situations where:

A. the market is composed of distinctly different buyer groups who have different needs or use the product in different ways.

B. most other rival firms are using a best-cost producer strategy.

E. most industry participants are also using a focused differentiation strategy.

In these situations, focused strategies can help the firm target specific buyer segments and differentiate itself from competitors, leading to a competitive advantage.