Amir and Carla are business partners．They own a luxury hotel which operates in a niche market． The business has a short hierarchical structure．Amir and Carla use Herzberg＇s theory of motivation to keep their 5 employees well motivated．Amir and Carla are considering opening another hotel in a different city．They will need to identify a suitable source of finance if they decide to expand． Secondary market research can be used to help a business decide whether it should expand． （c）Outline two advantages to Amir and Carla of operating in a niche market． Advantage 1： Advantage 2：

Answer:

Award 1 mark for each relevant advantage [max 2].
Award 1 mark for each relevant reference to this business [max 2].
Points might include:
- Can charge higher prices [k] for its luxury service [app]
- Fewer competitors [k] for the hotel [app]
- Focus on meeting the needs of customers / can target customers [k] through its 5 employees [app]
- Can survive in markets dominated by larger firms [k] which may increase the chance of expanding [app]
- Builds up specialist skills/knowledge [k]

Other appropriate responses should be credited.

Knowledge points:

Solution: