A company that provides a product to a niche market at a differentiated price point operates under what basic company strategy?

The company in question operates under a differentiation focus strategy, which emphasizes providing a unique product tailored to a specific niche market. This approach allows the company to stand out from competitors by offering distinctive features, quality, or service that appeal specifically to a targeted group of consumers. By setting a differentiated price point, the company signals that its product offers added value compared to more generic offerings, justifying a potentially higher price.

In this context, the differentiation focus strategy is about carving out a niche and catering to the specific needs and preferences of that market segment, which can lead to customer loyalty and less price sensitivity. This strategy contrasts with cost leadership, where a company would aim to be the lowest-cost producer for a broader market, and market penetration, which involves strategies to increase market share for existing products within existing markets. Diversification refers to entering new markets or product lines, which is not the case here, where the focus remains on a specific product for a niche audience.