The risks of a focused strategy based on either low$-$cost or differentiation include$$

A$.$the chance that niche customers will bargain more aggressively for good deals than customers in the overall marketplace.

B$.$the potential for the preferences and needs of niche members to shift over time towards many of the same product attributes and capabilities desired by buyers in the mainstream portion of the market.

C$.$the potential for the segment to be highly vulnerable to international economic cycles and currency exchange rates.

D$.$the potential for segment growth to race beyond the production or service capabilities of incumbent firms.

E$.$the lack of capital to fund massive advertising campaigns.

A$.$ outmatching competitors in offering niche buyers an absolute rock$-$bottom price.

B$.$ delivering more value for the money than other competitors.

C$.$ performing the primary value chain activities at a lower cost per unit than can the industry's low$-$cost leaders by outsourcing them to low$-$wage countries.

D$.$ dominating more market niches in the industry via a lower cost and a lower price than any other rival.

E$.$ serving buyers in the target market niche at a lower cost and lower price than rivals with a product or service that meets their basic needs.