Final answer:
Brokers focus on niche markets to gain a competitive advantage, decrease marketing costs, and attract loyal clients. Competitors sometimes cooperate to form lobbying associations to tackle common industry goals more effectively.
Step-by-step explanation:
Brokers often choose to focus on niche markets because it allows them to become experts in a specific area, leading to a competitive advantage, enhanced reputation, and potentially higher profits. In niche markets, competition is typically less intense, which can provide brokers with the opportunity to offer specialized services that are not widely available, thereby attracting a more targeted and loyal client base. Additionally, operating within a niche market can often lead to lower marketing costs, as the audience is more defined and the broker can use more direct and efficient methods of reaching potential clients.
Regarding competing firms coming together to form lobbying associations, this cooperation can occur when competitors realize they share common goals that are best addressed through a united front. For example, firms may lobby for regulatory changes that benefit the entire industry, ensuring a level playing field and avoiding a situation where one firm's actions might inadvertently harm the interests of another.