Unlike a Product/service Differentiation Competitive Strategy, a Niche Strategy

question 73

Multiple Choice

Unlike a product/service differentiation competitive strategy, a niche strategy:

• A)is suitable for small companies with limited resources.
• B)is opted in a market segment that has low growth potential.
• C)aims at being the low-cost competitor in an industry.
• D)removes frills and options from a product or service.

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Definitions:

Net Income

The total profit of a company after all expenses, including taxes and operational costs, have been deducted from total revenue.

Variable Costs

Expenses that vary directly with the level of production or service delivery.

Fixed Costs

Fixed outgoings, including rent, salaries, and insurance, that are unaffected by production or sales volumes.

Net Income

The total earnings or profit of an individual or business after deducting expenses and taxes.