Stock Trading and Other Things

Why would a LARGE firm want to enter a niche market?

I need to find three reasons for this. Any help? Thanks :)

Public Comments

1. they see the niche market as one that will grow.
they already have products or services that will meet the demand.
or the consumers in that niche market fit the company's expectation of customers.



2. Because there is a lot of money to be made in niche markets. For example, car companies have targeted minivan moms which is a niche and sold tons of minivans to them. FUBU targeted younger African American males and has been largely successful in that niche. Louis Vuitton has figured out how to make a killing off of selling expensive purses to rich women and those who want to feel rich. Titleist sells golf related items to business men.

Many companies find it more profitable to be really good at one thing instead of mediocre at everything. Focusing on a niche allows the company to become an expert on the preferences of certain groups and how to market to those groups. Just think, when you do a specific thing over and over, you get real good at it right? You can do it better and faster.