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Niche Market

In: Business and Management

Submitted By daxiangdaxiang
Words 33059
Pages 133
PARRISH, ERIN DODD. NICHE MARKET OPPORTUNITIES IN THE GLOBAL MARKETPLACE. (Under the direction of Dr. Nancy Cassill and Dr. William Oxenham). The purpose of this research was to analyze how a niche strategy can be used by US textile and apparel companies to compete with lower priced imports. With the increasing globalization of the industry, it has been suggested that companies focus on products that offer a competitive advantage over commodity products (Standard and Poor’s, 2003). One way of doing this is to focus on specialized, or niche, products. The conceptual models used in this study provided a framework for specialization within trade. The trade theories examined were 1) Ricardo’s Comparative Advantage Theory (Ricardo, 1817), 2) Heckscher-Ohlin Trade Theory of Factor Proportions (Heckscher & Ohlin, 1991), 3) Posner’s Technology Trade Gap Theory (Posner, 1961), 4) Vernon’s Theory of the Product Life Cycle of Trade (Vernon, 1966), and 5) Porter’s Model of Competitive Advantage (Porter, 1998). Each of these trade theories predicts specialization as a result of trade. This means that as trade barriers decrease, a country’s resources will focus on those processes in which it has a competitive advantage. For the US textile and apparel industry, this means moving away from basic textile items used in apparel production, such as basic fabrics, and moving towards more focused and specialty products, which includes niche products. The methodology used in this study consisted of two phases. Phase I used a

deductive research design with an aim to clarify niche strategy issues and provide breadth on the topic (quantitative data). The instrument utilized in this phase was an online survey, which was developed by the researcher and contained three sections: company information, niche markets and globalization. Because of the limited literature on niche markets, the...

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