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Why Do Service Firms Not Have Inventory Costs Pertaining to Items

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Why do service firms not have inventory costs pertaining to items to be sold? What type of costs do they have?


Definitions:

Niche Strategy

A focused marketing approach targeting a specific, well-defined segment of the market, often with specialized products or services.

Product Differentiation

The method of making a product or service stand out from the competition in order to appeal more to a specific target group.

Narrow Market

A market segment characterized by a specific and often limited customer base, interests, or area of focus.

Cost Leadership

A competitive strategy where a company aims to become the lowest-cost producer in its industry or market.

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