13 Analyse how serving a niche market can help a small business to survive.

[Sir Afzal Shad]

13 Analyse how serving a niche market can help a small business to survive. [3]
Hint: Less competition > Large firms are not interested in a small market > This allows the small business to dominate its niche and build loyal customers.

[Aarib Saad]

(KN)There is very little competition in a niche market.
(APP)For instance, in the shoe market there are a lot of heavy hitters like Nike and Sketchers that produce sports shoes or more fashionable shoes, but there aren't any big names in the market that sell medicated shoes of shoes for flat footers.
(AN)Thus, allowing such a niche business to be able to charge a higher price, as it will be some of few providing that product, so the business will generate more sales revenue, improving cashflow and allowing for riskier moves in the future that can lead to growth.

[Fatima ibtehaj]

[KN]It allows businesses, especially small firms, to focus their products and marketing on a particular group rather than competing across the whole market.
[APP]A small bakery that specializes in custom-made, sugar-free cakes for diabetic customers operates in a niche market. Instead of competing with large commercial bakeries, it focuses on meeting the needs of a specific group.
[AN]By serving a niche market, the small firm avoids direct competition with larger firms which allows the firm to build strong customer loyalty, as its products closely match customer preferences and so they can charge premium prices which can help the small firm maintain steady demand, develop a strong reputation.

[shamaim shakeel]

[KN] A niche market focuses on meeting the special needs of a small group of customers rather than trying to serve everyone.
[APP] For example, The Honest Company sells ecofriendly baby products made from natural ingredients for parents who care about safety and sustainability.
[AN] Serving a niche market helps a small business avoid direct competition with large firms, build loyal customers who value its unique products, and charge higher prices, helping it stay profitable and survive in the market.

[Naveen fatima]

[KN] Small businesses often cannot compete directly with large firms in big markets.
[APP]For example, a small bakery that makes gluten-free cakes focuses on customers with special dietary needs.
[AN]Serving a niche market helps a small business survive because it faces less competition from large companies that target mass markets. It can also charge higher prices as customers are willing to pay more for specialised products. In addition, focusing on a small group allows the business to build customer loyalty and attract repeat buyers, helping it stay stable in the long term.

[Arham Qadri]

[KN] By reducing competition in niche market.
[APP] For example there are many shoe brands like Nikke, Addidas and Puma who produce football shoes and mainly for the attackers, wingers and midfielder while the defenders and goalkeepers are left out.
[AN] Hence due to this the niche business can charge high price, as there will be less of those shoes required by the goalkeepers and defenders which will make them buy those shoes which will result in increase in sales hence generating more profit.

[Abdullah Mohsin]

[KN] Less competition in niche market.
[APP] For example, a startup shoe producer could focus on producing special shoes e.g sizes that are not available in the general market which means it has less sellers and i.e less competition, allowing the business to easily survive and dominate the market.
[AN] This enables the business to charge higher prices and increase its profits as customers have no other options to choose from, improving its financial stability and allowing it to reinvest in marketing or product development to strengthen its market position further.

[Aayan Zaidi]

KN: Serving a niche market means focusing on a small group of customers with special needs.
APP: E.g a small bakery making only gluten - free cakes attracts loyal customers who can't find them elsewhere.
AN: This helps the business survive because it faces less competition and can charge higher prices for unique products.

[Abdullah Altaf]

[KN] Due to less competition in a niche market, small businesses can concentrate their resources and tailor their offerings to a specific customer base.
[APP] For instance, a small company specializing in handcrafted, organic baby clothes caters to parents seeking unique, sustainable options, outcompeting larger retailers.
[AN] This allows the business to charge premium prices, build strong customer loyalty through personalized service, and establish a strong brand reputation, ultimately increasing its chances of survival and growth.

[abdurrehman waseem]

KN: Serving a niche market allows a business to focus on a clearly defined group of customers.
App: for example,A small bakery making only gluten free cakes attracts health conscious customers ignored by larger competitors.
An: This reduces direct competition, builds strong customer loyalty, and allows higher prices helping the business stay profitable and survive despite its small scale.

[Mustafa Khan]

kn]There is less competition in niche market.
app]for example there are many companies that sell shoes but very few of them sell medicated shoes.
An]since there is little or no competition, it helps the business increase its market share, establish a brand image and eventually help in establishing monopoly in the business.