According to Michael Porter, a Firm Practicing a Niche Strategy

question 86

Multiple Choice

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

---

Definitions:

Mark-up

Mark-up refers to the amount added to the cost price of goods to cover overhead and profit; it is a percentage of the cost price.

Camping Tents

Portable shelters made of cloth used for outdoor overnight stays, especially in wilderness areas.

Net Cost

The actual cost of a product or service after all discounts, rebates, or allowances have been applied.

Breakeven

A situation where the sum of all costs equals the sum of all revenues, with no profit or loss occurring.