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Which of the following is not an advantage of being a market-oriented business?

A. Increased expenses due to continuous research
B. Reduced risk
C. Quick to respond to market changes
D. Increased competitiveness

1 Answer

7 votes

Final answer:

The disadvantage of being a market-oriented business is the increased expenses due to continuous research. This is because the need for ongoing market research and product development can add to the company's financial burden.

Step-by-step explanation:

An advantage of being a market-oriented business is the ability to quickly respond to market changes, increase competitiveness, and reduce risks. However, the option that does not represent an advantage but is actually a disadvantage is Increased expenses due to continuous research. While market orientation can indeed lead to becoming more competitive and agile in the marketplace, it can also result in higher costs as the business must invest in continuous market research, product development, and marketing strategies. This can strain the company's finances, especially if the new products or strategies do not lead to an increase in sales sufficient to offset the additional expenses. Moreover, the intense competition from other firms offering better or cheaper products can reduce a company's profits and even push it out of business, posing a significant risk to both the business and its employees.

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