Firms with low shares of the total market can become highly profitable through smart niching.

Question

Quizplus · Accepted Answer

By targeting a specific market niche and offering specialized products or services, firms with low overall market shares can still generate high profits. This is because they are able to differentiate themselves and create unique value for their target customers, who are often willing to pay a premium for specialized offerings.

Firms with Low Shares of the Total Market Can Become