Many Companies Start as Niche Operations in Order to Get

question 93

Short Answer

Many companies start as niche operations in order to get a foothold against larger competitors and then grow into broader competitors. Enterprise Rent-A-Car began by building a network of neighborhood offices rather than competing with Hertz and Avis in airport locations. Enterprise is now a large car rental company.
Which of the following is best supported by the statements above?
The best path to long-term growth is to avoid confrontation with larger competitors for as long as possible.
It is generally better to confront one established competitor at a time rather than many at once.
Even when competing in a niche, a company should act in every respect as if it is targeting every market segment.
The car rental industry is the best example for niche companies to consider when evaluating how to grow into prominence.
A company's initial goals do not place limits on its long-term success.

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Definitions:

Organizational Stake

An interest or share in an undertaking or organization, typically referring to how various stakeholders can affect or be affected by the organization's activities and policies.

Ideological Control

The attempt to influence or control people's beliefs, values, and behaviors through normative ideas and assumptions within an organization or society.

Values and Beliefs

Core principles and assumptions that guide behaviors and interpretations of events by individuals or cultures.

Technological Control

The use of technology to monitor, manage, or influence the behavior and performance of individuals or systems.