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Essay Details:
Essay text:
If the selected segment failed, the company has no fallback position.
? If competitors noticed a rival establishing and succeeding in a particular segment, they could try to take some of it.
? Niche strategy ignores other areas of the market. It can cause problems in future as may make it more difficult for company to expand to other segments.
Example:
The good example of the niche company could be Ferrari. This Italian car manufacturer produces very expensive, hand-made sports vehicles in limited series for premium customers. It sells yearly only about 4000 cars, but brings huge profits. Ferrari's cars are among the most desirable of vehicles to own and drive, and are one of the ultimate status symbols of wealth in the world...
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