Answer the following questions : not essay type.4 or 5 points is enough. a. : Ex
ID: 415543 • Letter: A
Question
Answer the following questions : not essay type.4 or 5 points is enough.
a. : Explain how a product or service within a niche market, can differentiate an entrepreneurial firm from its competitors? Must give examples
b: Familiarize yourself with “Task Rabbit” one of many firms built on the “shared economy” platform. Now describe how “Task Rabbit” concept met the three “main” criteria for a “feasible” venture? (Ignore –“organizational” feasibility which was introduced as a 4th criterion). Do it taking one criterion at a time
c: If you are planning a business of taking people to the space so they can experience "space walking" (away from the earth's gravity) and "space living", chart out the steps involved in conducting a "feasibility study" before embarking on a detailed business plan for that venture.
d. Read the article attached on Weak Ties. (1) Identify as to how the major corporations used weak ties to fine-tune their strategies? (2) Today entrepreneurs can find weak ties easily- Why?
e: How does the Corridor Principle and Theory of Weak Ties help strengthen the Venture Feasibility Study? (I expect you to do outside research as part of this online class & report f. : How does the Corridor Principle and Theory of Weak Ties help strengthen the Venture Feasibility Study?
Explanation / Answer
Entrepreneurs always do something ‘out of the box’ to enter and retain themselves in a new market. A ‘Niche’ market is the one which is relatively small, and more specialized for a specific group of people or consumers. It helps to develop the firm its core competency and can help in generating brand equity in the long run. In the shorter run, it can help in leveraging higher financial gains.
Merits of Niche Market Entrepreneurship
1. Customer loyalty towards Brand: Customers end up getting the products they really need so they are more loyal to our brand in the long run.
2. Competition is less: There are generally few players who focus on niche marketing. Firms generally go for mass targeting as they wish to cater all segments of society. Hence, in this case, one can take leverage of less competition and make gain customers.
3. Redefining yourself: Niche markets are very useful when it comes to redefining your image, product differentiation and customer base.
4. Less Marketing Cost: In case of Niche Marketing, you only need to cater and market to a specific set of population. Hence, your costs of advertising (local maybe), printing the pamphlets etc. goes down.
De-Merits of Niche Market Entrepreneurship
1. Not Suitable for Small Firms: As smaller firms have limited resources and budgets, and they wish to grow in current markets, they are not able to generate larger profit margins while focusing on Niche products.
2. Limited Growth: As the number of customers involved is very small, there is limited scope for growth in a niche segment.
For e.g. American Express credit cards company focuses on a niche segment of customers who are earning higher than the average salary of an individual. They serve niche segment and are able to generate larger profits. For the quality of services they offer, they charge an annual fee for card usage which other competitors don’t do. But still customers like to pay and enjoy Amex services.