Market circumstances that make a focused low-cost or focused differentiation strategy attractive are characterized by Multiple Choice an industry has few or no segments and market niches, thereby precluding the choice of an attractive niche suited to a company's resource strengths and capabilities. high costs or increased difficulty for multisegment rivals to meet the specialized needs of the target market niche and at the same time satisfy the expectations of their mainstream customers. intense competition from industry leaders in the niche or focused segment. a target market niche that is too small to be profitable and offers low growth potential. few, if any, rivals are attempting to specialize in the same target segment