Niche Market Strategy

The video discusses competitive strategy, focusing on niche market strategy as a way to meet specialized needs of a target market segment. It explains how companies can use cost-based or differentiation approaches to stand out in a niche market. Michael Porter's theory of generic strategies is introduced, emphasizing the importance of unique value propositions in niche markets.

What is the primary focus of an overarching organizational strategy?

• To decide on the company's product line

• To set financial goals for the company

• To establish how the company is perceived in the marketplace

• To determine the company's internal processes

How does a niche market strategy benefit a company?

• By increasing the company's overall production costs

• By allowing the company to target a broad audience

• By enabling the company to address the specific needs of a select market segment

• By reducing the company's market share

What is a key characteristic of a niche market?

• It consists of a large group of customers

• It is not influenced by competitive strategies

• It requires a unique value proposition

• It is easily accessible to all companies

According to Michael Porter, what must companies establish within a niche market?

• A high-cost production model

• A cost-based or differentiation approach

• A broad market appeal

• A focus on internal stakeholders

What is the ultimate goal of a niche market strategy?

• To meet the needs of the larger market

• To serve a select customer segment with unique requirements

• To reduce the company's operational costs

• To increase the company's overall market share