Question

According to Michael Porter, a firm practicing a niche strategy:

a. Has relative market share and emphasizes efficient-scale facilities.
b. Dominates a particular target market although its overall market share may be low.
c. Chooses high-growth markets while holding onto substantial mature markets.
d. Attempts to pioneer in product/market development.
e. Insulates itself from competitive rivalry by creating brand loyalty and the resulting lower sensitivity to price.

Answer 1

b. Dominates a particular target market although its overall market share may be low.

Step-by-step explanation:

• A niche strategy of the porter was to come with the product that fills the market segment and is characterized by the narrow specialization of the services focusing on a specific need.