IPA IP 2026 Question 32
A question IPA Japan published in 令和8年度 ITパスポート試験 公開問題 問32, translated into English. ITPEC is based on the same exams.
Which of the following is the most appropriate example of a niche strategy?
Explanation
A unique technology aimed at a small, high-end segment — a niche strategy concentrates on a narrow market that larger competitors do not serve, where the company's special strength wins.
In the competitive positions of a market (leader, challenger, follower, nicher), the nicher avoids head-on competition with large companies. It picks a small, specialised segment and builds a strong position there with distinctive products or skills. Company D uses its own processing technology to make expensive, highly airtight waterless pots for high-end restaurants only: a narrow target, served by a capability others lack.
Answer (c)
Why not others:
- •(a) — low costs from overseas production and cheap mass-market goods sold nationwide is a cost leadership strategy aimed at the whole market
- •(b) — merging with a rival to take the top share is a challenger's bid for market share through scale, the opposite of avoiding the leader
- •(d) — selling off and leaving a declining business is withdrawal (divestment), a decision about the business portfolio, not a way of competing in a segment
Key rule: Niche strategy = a narrow, specialised segment + a distinctive strength that big competitors cannot easily match; mass-market low price is cost leadership.
Business Strategy Management · AI-written, may contain errors
This question comes from the past questions IPA Japan publishes, translated into English by ITPEC Practice. ITPEC Practice is an independent study tool and is not affiliated with IPA or ITPEC. See the original paper (PDF) or Report an issue.