Unit 5 Markets & Market Forces

Question 1

Advantages niche markets

Answer 1

.Higher end products will sell for more - more profit
.Easier to get a foot hold into the market
.Nichemarket may have a high growth rate

Question 2

Disadvantages niche markets

Answer 2

.May not be a large enough segment to justify product r&d and launch costs
.More limited economies of scale
.Higher end niche products may have greater cost of sales.