Question

Shenshen Zhongxing Telecom (ZTE) is a Chinese company that is the only telecommunications company in China that produces and markets an inexpensive camera phone to sell to middle-class Chinese living in urban areas. Because ZTE targets a single segment within a limited geographical area, it can be said to have a(n):

Answer 1

Niche competitive advantage

Step-by-step explanation:

In this scenario, Shenshen Zhongxing Telecom (ZTE) is a Chinese company which is the only telecommunications company in China that produces and markets an inexpensive camera phone to sell to middle-class Chinese living in urban areas. Because ZTE targets a single segment within a limited geographical area, it can be said to have a niche competitive advantage.

Generally, companies using a niche competitive advantage are only seeking or interested in targeting and reaching a single but unique segment within a limited geographical area or market. ZTE specialize in producing a unique inexpensive camera phone which would avail them a competitive advantage over other companies in the industry.

Hence, the niche competitive advantage allow companies to specialize in a unique product, innovations, narrow competition from rival businesses, reaching target audience effectively and ability to take price decisions.