Given the advantages accrued by pure-play businesses, what is the most important point that is regarded by many as the single most advantageous? Explain, Why?
Question
Given the advantages accrued by pure-play businesses, what is the most important point that is regarded by many as the single most advantageous? Explain, Why?
Solution
The most important advantage often attributed to pure-play businesses is their focus. As a pure-play business, a company specializes in a single area or industry. This allows the company to concentrate all its resources, including time, money, and manpower, on this one area.
This focus can lead to a deep understanding of the industry, the market, and the customers. It can also lead to innovation and expertise that may not be possible in a more diversified business.
For example, a pure-play online retailer may be able to offer a wider range of products, more competitive prices, and better customer service than a traditional brick-and-mortar retailer that also has an online presence. This is because the pure-play retailer can focus all its resources on its online operations, while the traditional retailer must split its resources between its online and physical operations.
In addition, this focus can make it easier for investors to understand the business and its performance. This can make the company more attractive to investors, which can lead to increased investment and growth.
In conclusion, the focus of a pure-play business can lead to a deep understanding of the industry, innovation, expertise, and attractiveness to investors. These benefits can give a pure-play business a significant advantage over its competitors.
Similar Questions
Which of the following is an advantage of the corporate form of business?
Competitive Advantage is normally obtained by leading in one of the following exceptSelect one:a.Product differentiationb.Mass sellingc.Low cost
Which of the following is NOT an advantage of a sole proprietorship?independence in business decisionseasy to organizekeeping all profitslimited liability
he primary objective of business is to:a) Maximize salesb) Generate employmentc) Maximize profitd) Provide goods and services
One advantage of the corporate form of organization is the
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.