Question

Calexor is a telecommunications SME that has been highly successful despite its limited resources. Stakeholders attribute Calexor's success to its ability to serve niche markets. Which of the following, if true, would most strongly support the claim that Calexor's growth can be attributed to niche market sales?

a) Calexor recently diversified its product range.
b) Calexor's competitors have also focused on niche markets.
c) Calexor invests heavily in government lobbying.
d) Calexor relies on extensive government subsidies.

Answer 1

Evidence that Calexor has succeeded in serving specific, underserved segments of the market would strongly support the claim that its growth is due to niche market sales.

Step-by-step explanation:

The question asks which evidence would most strongly support the claim that the telecommunications SME, Calexor's success, is due to its focus on niche markets. When evaluating the provided options, Calexor diversifying its product range or relying on government subsidies and lobbying efforts do not necessarily correlate with success in niche markets. On the other hand, focusing on unique or specialized segments of the market aligns with the core competency theory, which suggests that companies are more successful when they concentrate on a few products or services that they excel in. Therefore, evidence that Calexor has been highly successful in serving specific, underserved segments of the market would most effectively support the claim about its growth attributed to niche market sales.