Topic > Clean Edge Case Analysis - 1668

First, the niche positioning strategy requires lower marketing costs than the traditional one. Therefore, the company should be more successful in achieving a return on investment and reaping large profits. Secondly, it helps prevent cannibalization. Cannibalization occurs when a company has a lower quality product that decreases the demand for higher quality products (Moorthy and Png, 1992). Third, as Rosenberg mentioned, it will complement Paramount's existing product line. However, there are some implications for this recommendation. The company may lose some customers as Pro and Avail lack advanced technology. According to Quelch and Beckham (2011), “He responded: “Albert, research shows that our consumers are becoming more sophisticated and expect more advanced technologies.” Additionally, target consumers may think that the product is unsophisticated, which may cause the niche positioning strategy to be