SMEs with limited resources and limited competition may find a concentration market strategy preferable.

Question

Quizplus · Accepted Answer

SMEs with limited resources and limited competition may find it more effective to target a specific niche or local market rather than trying to compete in a larger market. This is known as a concentration market strategy, and can help the SME to build strong relationships with customers and establish a reputation for being an expert in their chosen field. Additionally, by focusing on a smaller market, the SME may be able to operate with lower costs, as they do not need to invest in expensive marketing campaigns or compete with larger firms for resources.

SMEs with Limited Resources and Limited Competition May Find a Concentration