Shenshen Zhongxing Telecom (ZTE) is a Chinese company that is the only telecommunications company in China that produces and markets an inexpensive camera phone to sell to middle class Chinese living in urban areas.Because ZTE targets a single segment within a limited geographical area, it can be said to have a(n):
A)promotional emphasis
B)niche competitive advantage
C)relationship building advantage
D)comparative advantage
E)differential competitive advantage

Question

Quizplus · Accepted Answer

ZTE's strategy of focusing on a specific market segment (middle class Chinese in urban areas) with a specialized product (inexpensive camera phone) exemplifies a niche competitive advantage. This approach allows ZTE to cater specifically to the needs and preferences of this segment, differentiating itself from competitors who may target a broader audience.

Shenshen Zhongxing Telecom (ZTE) Is a Chinese Company That Is