Identify at least three challenges when setting up a business. Explain why (answer attached)

1. Identify at least three challenges when setting up a business. Explain why they are challenges.

2. Define what a “niche” product is. Give at least three examples of niche products.

3. Explain why a niche company might have an advantage in a market. Would price necessarily

be an advantage? Explain why or why not.

4. Identify and explain three reasons why customers would pay more for exclusivity.

5. Explain how a niche player “chips away” at a larger competitor’s base. Give three examples of

retailers who have done this.