An Interior Decorator Has Moved His Business from Los Angeles

Multiple Choice

An interior decorator has moved his business from Los Angeles to St. Paul, Minnesota, because his spouse's company transferred her to St. Paul. The decorator is distressed because the customers in his target market have, in his words, "banal and bourgeois taste." What is the decorator's problem?

A) The decorator does not understand that customer needs are neither right nor wrong, good nor bad.
B) The decorator has no core competencies that will transfer to his new geographic market.
C) The decorator should choose a strategy of cost leadership in this environment.
D) The decorator is highly affiliated with the new target market and understands how he can create value for it.