A tool of the management to translate performance measures to provide a framework to implement the

strategy.

Not limited to financial informations only

All components of balanced scorecard has goals and measures

When substitutes hit the market at lower prices it negatively affects the
differentiating firm since consumers will opt for the cheaper products
compared to the products being offered at higher prices by the differentiating
firm.

5. It could be too specific for the market.

There is always a danger that providing a niche product can be too limiting for
a business. Some niches can be so specific that only a handful of people
qualify as a targeted consumer. Even if you achieve a 100% conversion rate
with 20 customers, you’d likely earn more money with a 10% conversion rate
on 300 potential customers. Although there is always a market share to find
through ultra-specificity, not every market offers a chance to be profitable.

A balanced scorecard is a strategic management performance metric used to

identify and improve various internal business functions and their resulting
external outcomes. Balanced scorecards are used to measure and provide
feedback to organizations.

Specific reasons that a company would use a Balanced Scorecard might

include: Communicate the business vision and strategy. Share objectives that
support the business's vision and strategy. ... Create goal-based budgeting,
tracking, and reward systems.
To ensure long-term flexibility and survival, an organization needs to prepare for the future.
The balanced scorecard managing system “maps an organization's strategic objectives into
performance metrics in four perspectives: financial, internal processes, customers and
learning and growth,” reports NetMBA. It offers an approach to deciding where your small
business is heading, what you need to get there, and what you need to measure and control
to achieve your goals.

The Balanced Scorecard is a management system for improving performance.

It’s a way of looking at your organization that focuses on your big-picture
strategic goals. It also helps you choose the right things to measure so that you
can reach those goals.