Shenshen Zhongxing Telecom (ZTE) is the only telecommunications company in China producing and marketing a specific inexpensive camera phone to sell to middle-class Chinese living in urban areas. Because ZTE targets a single segment within a limited geographical area, which advantage does it have?
A) relationship-building advantage
B) comparative advantage
C) differential competitive advantage
D) niche competitive advantage

Question

Quizplus · Accepted Answer

ZTE has a niche competitive advantage by targeting a specific segment within a limited geographical area. This allows them to focus their resources and marketing efforts to meet the specific needs and preferences of their target market, which can lead to higher customer loyalty and sales.

Shenshen Zhongxing Telecom (ZTE) Is the Only Telecommunications Company in China