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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.

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