Car manufacturers such as Lamborghini compete in the small super car category.These cars offer more than just transportation.They are known for their styling and state of art technology.Which of the following is an advantage for such a company?
A)It depends on its ability to reduce the price to drive competition out of the market.
B)It does not face damaging attacks from larger firms.
C)It growth is never stymied irrespective of the fact that it serves a niche market.
D)Its area of operation cannot be made to disappear or be taken over by larger competitors.
E)It can charge very high prices.

Question

Quizplus · Accepted Answer

One advantage for a company competing in the small super car category is the ability to charge very high prices due to the exclusivity and prestige associated with such cars. This allows them to potentially generate high profit margins even though they are serving a niche market.

Car Manufacturers Such as Lamborghini Compete in the Small Super