Some companies that begin with a focus strategy eventually abandon that strategy as they grow. A good
Question:
Some companies that begin with a focus strategy eventually abandon that strategy as they grow. A good example is JetBlue, which initially had a geographic focus on the northeastern portion of the United States but now serves markets all over the United States. Another example is Enterprise in the car rental market, which initially eschewed airport rentals but now is located at airports all over the United States. Why might it make sense for a company to start off with a focus strategy and later move away from it? Under what circumstances could it be argued that moving from a focus to a broad coverage strategy reflects poor decision making on the part of a company’s managers?
Step by Step Answer:
Economics Of Strategy
ISBN: 9781119378761
7th Edition
Authors: David Besanko, David Dranove, Mark Shanley, Scott Schaefer