A focused strategy aimed at securing a competitive edge and which is based either on low cost or differentiation becomes more attractive when:
A. it is costly or difficult for multi-segment competitors to put capabilities in place to meet the specialized needs of the target market niche and at the same time satisfy the expectations of their mainstream customers.
B. the industry has many different segments and market niches, thereby allowing a focuser to pick an attractive niche suited to its resource strengths and capabilities.
C. industry leaders do not see that having a presence in the niche is crucial to their own success.
D. the target market niche is not overcrowded with a number of other rivals attempting to focus on the same niche.
E. the target market niche is small enough to limit profitability and the outlook is ripe for differentiating.
Answer: the target market niche is small enough to limit profitability and the outlook is ripe for differentiating.