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For which kind of firm is a niche strategy described as possibly the only viable option?
AA firm that holds the largest share of a mature market
BA firm that sells only through its own retail outlets
CA firm that has just merged with its closest competitor
DA small firm with limited resources facing giants
Answer & Solution
Correct answer: D. A small firm with limited resources facing giants
1. A niche strategy concentrates limited resources on one segment.
2. Small companies with limited resources may face giant competitors across the whole market.
3. For such firms the niche advantage may be the only viable option.
4. Once a segment is chosen the firm must be able to defend it against challengers.
5. A market leader, a firm with its own outlets and a newly merged firm all have wider options.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 11 "Creating Products and Pricing Strategies to Meet Customers' Needs", section 11.2 Creating a Marketing Strategy_
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