Which of the following statements is true about the niche strategy?
a. Only large companies can implement a niche strategy.
b. Companies that adopt a niche strategy have only a small number of customers.
c. Only the companies that do not have competitors can adopt a niche strategy.
d. Companies that adopt a niche strategy can only gain a price advantage over competitors.
ANSWER: b
For small companies with limited resources that potentially face giant competitors, niche targeting may be the only viable option. Many companies using a niche strategy serve only a limited geographic market.
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