In this case study it deals with creating a business. It will explore challenges with starting a
business. This report will also give you the definition of niche product and the advantages and
how niche players chip away at larger competitors.
In the business world you will many obstacles when setting up a business. While studying the text it lists numerous challenges. One challenge is Unlimited Liability and it is when you run the risk of being held accountable or liable for others mistakes. Disagreements may arise because of personal reason and different views on how the daily business should be operated. Lastly attracting new investors could become a barrier because of lack of support from partners.
In order to understand niche product first you must defined it. Dictionary.com defines “niche product is a product that is made and marketed in a smaller but profitable market”.(niche product 2010).Now that we have define a niche product here are few examples of this product Pedi egg , touch –n- brush, and designer snuggie . These items are found in discounts stores like Wal-Greens, Wal-Mart and USA Drugs and not in upscale stores such as Macys, Sax Fifth Ave and Dillards.
Advantages of Niche Market
By targeting a smaller market you could focus on being customer driven and making sure you are selling quality merchandise. If your customer are happy and pleased they are more likely to tell others about your product which could lead to more sells. Price would not be an issue if you customers are happy.
Advantages of Exclusivity
Consumers may buy exclusivity products because they feel they’re getting better quality. It could be limited to certain people such as the wealthy and then service because of what once can expect as far as the product.
Sam Walton had a small mom and pop store back in the 1940’s and now Wal-Mart is one of the largest... [continues]
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