Card 160 / 204: Your home-made organic gelato has received such rave reviews from family and friends that you have decided to turn it into a business. Due to the high cost of organic ingredients, your product is expensive to produce, resulting in a relatively small customer base willing to pay the high retail price in grocery stores. Fortunately, you have found a co-packer who will produce your product to your exacting standards; however, the distribution network for frozen desserts is geared toward high-volume producers. Also, since the frozen dessert market has many entries, investors are reluctant to become involved. Why is your situation doomed to failure?
A) There is no reason for the company to fail. If the product is good, consumers will buy it.
B) Without investors, a company cannot survive.
C) The organic market is too small for any company to make a profit.
D) Without access to an effective distribution network, coupled with the inability to take advantage of economies of scale, the product and the market do not appear to be suitable.
E) Only a market with full coverage can be successful in this product category

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