Niche, mass markets and market size

Niche market - Where a business targets a smaller segment of a larger market where customers have specific needs and wants

Advantages

less competition

Clear focus

Builds up specialist skill and knowledge

Can often charge a higher price

Profit margins are higher

Customers tend to be more loyal

Disadvantages

Lack of economies of scale

Risk of overdependence on a single product or market

Likely to attract competition if successful

Vulnerable to market…