Question 4
Which of the following statements best describes the difference between platform companies and niche companies?
Platform companies focus on creating a broad ecosystem where multiple users, services, or businesses can interact, while niche companies specialize in a specific product or service aimed at a particular market segment.
Platform companies usually operate in small markets with specialized audiences, whereas niche companies dominate large, general markets with diverse customer bases.
Platform companies rely solely on physical products for revenue, whereas niche companies generate income primarily through digital services.
Platform companies are less scalable than niche companies because they target a smaller audience, while niche companies can easily expand to a broader market.