The following case is a Market Analyst $($MA$)$ review of the company Ferris Inc. $($Ferris$)$ as per the most recent competitive and financial reports $($Courier$).$ This case and the reports $($courier$)$ are the basis for the next questions:

Ferris is an R&D and manufacturer of cutting$-$edge electronic sensors$.$ The company management praises the company's unique and innovative $R$&$D$ capabilities as its main competitive advantage. However, Ferris lost its market leadership position last year, falling from first to fourth place based on sales and market share. The downward trend of the stock price also indicates performance issues compared to the steep upward trend of competitors' stocks.

The company has a solid financial structure $($leverage$),$ and cash is not an issue $($it is abundant$).$ The Asset Turnover ratio $($ATO$)$ is at industry average but below excellent levels. Profitability and contribution margin are below the industry average. Despite the management's belief that the company has a competent innovation portfolio except for the High$-$End segment, the company needs to catch up in market share in the target segments.

In a recent interview with the top management, the MA learned that the company's strategy is that of niche differentiation, which intrigued the MA even more. He thought that if the company's focus is on the tech segments $($High$-$End, Performance, and Size$),$ an overall $($industry$-$wise$)$ lower sales and market share would be justified if the company was leading the target segments. The MA made a list of issues he observed in the conversation with the management that can explain Ferris's overall underperformance trend.