According to Michael Porter, a firm practicing a niche strategy:
A) Has relative market share and emphasizes efficient-scale facilities
B) Dominates a particular target market although its overall market share may be low
C) Chooses high-growth markets while holding onto substantial mature markets
D) Attempts to pioneer in product/market development
E) Insulates itself from competitive rivalry by creating brand loyalty and the resulting lower sensitivity to price

Question

Quizplus · Accepted Answer

According to Michael Porter, a firm practicing a niche strategy dominates a particular target market although its overall market share may be low. This means that the firm focuses on a narrow market segment and tailors its products or services to meet the specific needs of that segment, rather than trying to appeal to a broad range of customers. By doing so, the firm can achieve a strong position within its niche, even if it does not have significant market share overall.

According to Michael Porter, a Firm Practicing a Niche Strategy