Which statements about selecting a broad product-market are true?

Question

Multiple select question.

The firm should try to select a product-market that avoids the competition's strengths.

The product-market should be selected based on the firm's strengths.

The firm should initially select a product-market without consideration for resource limitations.

The market the firm wants to be in, may already be stated in the company's objectives.

Answer 1

The following statements about selecting a broad product-market are true:

1. The firm should try to select a product-market that avoids the competition's strengths. - This statement emphasizes the importance of strategic positioning and differentiation from competitors.

2. The product-market should be selected based on the firm's strengths. - Firms are generally more successful when they align their product-market choices with their strengths, expertise, and resources.

3. The market the firm wants to be in may already be stated in the company's objectives. - Strategic goals and company objectives often reflect the desired markets and product spaces for the firm.

The statement that is less likely to be true is:

3. The firm should initially select a product-market without consideration for resource limitations. - This statement is generally not advisable because understanding resource limitations is crucial for sustainable strategic planning and effective market selection.