Question

Which of the following statements is true about the niche strategy?

a. Only large companies can implement a niche strategy.
b. Only the companies that do not have competitors can adopt a niche strategy.
c. Companies that adopt a niche strategy can only gain a price advantage over competitors.
d. Companies that adopt a niche strategy have only a small number of customers

Answer 1

Answer: In regards with niche strategy the following statement is true: Companies that adopt a niche strategy have only a small number of customers.

Niche is a term that stands for commodities, services, or inclination that charms a small, differentiated part of the demography.

Therefore, if an organization chooses to adopt niche strategy then they are targeting a small and differentiated part of the consumer database or population.

Therefore, the correct option in this case is (d)