Question: Companies pursuing a focus strategy may also experience risks or pitfalls. Which one of the following is NOT one of them: Erosion of cost advantages

Companies pursuing a focus strategy may also experience risks or pitfalls. Which one of the following is NOT one of them:

  • Erosion of cost advantages can arise within the narrow segment.

  • Product/service offerings that are highly focused are subject to competition from new entrants.

  • Focusers can become too focused to satisfy buyer needs.

  • All other competitors are using the same suppliers.

2. If suppliers suddenly want to raise their costs, a low-cost position provides _______ flexibility.

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