ITPEC FE Subject A April 2024 Question 49

Source exam: ITPEC FE Subject A April 2024Topic: Management Strategy

ITPEC FE Subject A April 2024 — Question 49 of 60

"Concentrates resources in a specific segment" + "specialization" = Niche strategy.

The four market position strategies:

StrategyWhoGoal
LeaderMarket #1Maintain/expand market share
Challenger#2–3 playerOvertake the leader
FollowerMid-tier playersImitate the leader safely
NicheSpecialist playerDominate a narrow segment

Why not others:
- (a) Challenger — attacks the leader for broader market share, not specialization

- (b) Follower — copies the leader's moves to avoid risk

- (c) Leader — already dominant; focuses on expanding the total market

Key rule: Niche = concentrate on a narrow segment → specialize → avoid head-to-head competition with larger players.

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