Question

A real estate company provides housing services to retired individuals. It basically helps individuals above the age of sixty to search for houses with peaceful surroundings.
Which of the following statements holds true for the real estate company?

a.It depends on its ability to reduce the price to drive competition out of the market.

b.It does not face damaging attacks from larger firms.

c.It growth is never stymied irrespective of the fact that it serves a niche market.

d.Its area of operation cannot be made to disappear or be taken over by larger competitors.

e.It can charge very high prices.

Answer 1

Answer:

The correct answer is the option E: It can charge very high prices.

Explanation:

To begin with, the business presented in the case as a real estate company that provides housing services to retired individuals who typically are above the age of sixty can charge high prices to their customer due to the fact that basically they are looking for the most important service that there is in the market, a house. Moreover, the fact that the company only sales to retired people and therefore it specializes in a niche market indicates that the company is good at what they do an that is why those individuals choose it. Furthermore, the fact that these elderly people go to the organization expecting to find a house with peaceful surroundings generates the fact that they are willing to pay as much as they can to have the best for them  at the very last of their time.