How Does A Niche Player 'Chip Away' At A Larger Competitor's Base? Give Three Examples Of Retailers Who Have Done This.


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Roger Clegg Profile
Roger Clegg answered
There are a number of ways one can do this. Firstly you need to go after a different sales or delivery channel like online retailer, which back in the day was a small upstart that ate the lunch of larger established brick and mortar bookstores by owning that new channel called the Internet. You will need to provide a premium product or service like Starbucks or McDonalds.

This is because you can have the chance to take an otherwise ordinary product and get the public to pay a lot of money for it, through providing more of a fast food concept in the case of McDonalds or a European style gourmet coffee experience versus that standard ordinary "cup of coffee." The way in which you make it appealing is by introducing fresh ingredients at low costs and promoting it accordingly, which will develop product awareness, and if you have the suitable budget to create a clever marketing strategy you can create and develop plenty of sales.

One of the most important factors to take into account is to specialize in one product line or "theme" which is how the above examples have become so successful which either concentrate on items for coffee or fast food items from burgers to fries.

They also offer a far wider selection than most general brick and mortar stores. They can even find themselves inside more general stores like Wal-Mart who might have just a few feet of space available but would be essential for new customers. The key is to find a gap in the market and create your own niche accordingly and see if there really is a need for your product.
Amanda Wells Profile
Amanda Wells answered
This often happens nowadays because of the internet - a retailer who can sell goods more cheaply online may be able to undercut a major high street competitor, for instance. Amazon books is a famous example of this. You can find more examples with explanations here.

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