What term describes the breadth of the market in which a firm competes?

The term "scope of competition" accurately describes the breadth of the market in which a firm competes. It encompasses the range of products, services, and market segments that a company engages with, whether it operates within a niche market or a broader industry. Understanding the scope of competition is crucial for strategic management as it affects how a firm positions itself, identifies its competitors, and allocates resources.

When defining the scope of competition, a firm can assess the opportunities and threats present within its market. This can help determine whether it should focus on a broader audience or specific segments, thereby influencing marketing strategies, product development, and overall strategic direction.

In contrast, the other terms have more specific meanings that do not fully encapsulate the breadth of competition. Market segmentation refers to dividing a market into distinct groups of buyers. The target market identifies a specific group of consumers a business aims to reach. Competitive landscape outlines the various competitors within the market but does not necessarily provide a holistic view of the market's breadth itself.