In answer to the question of which markets should be served, Porter sees two alternatives: addressing the market for an entire industry (core market), or concentrating on one market segment or niche (Porter 1997, p. 67). A niche strategy concentrates on supplying the specific needs of a very limited consumer segment. Rolls Royce is an example of a firm employing a niche strategy within the automobile market. Within a niche, the company can strive for both product differentiation and cost leadership.
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