At the same time, large enterprises generally invest in advanced technology that can generate efficient manufacturing processes, resulting in a hypercompetitive environment in the market. For instance, small firms in the United States furniture industry focus primarily on particular market segments and compete through the depth of products, mostly in outdoor furniture.

In contrast, large US furniture enterprises concentrate on mass production and compete through product breadth.

Unlike large enterprises that seemingly exhibit a production orientation to achieve economy of scale and that often disregard exacting consumers in a low-demand segment, SMEs are more inclined to fill this specific market, otherwise known as a niche. Tellingly, niches in domestic markets are often small in value and may not suffice to transform SMEs into larger enterprises. As a result, SMEs typically aim to export to global niche markets as these consist of heterogenous products and have immense value compared to their domestic equivalents.

Additionally, global niche markets are essential for SMEs to scale up their competitive position, as the markets offer multiple benefits.

First, they generate a loyal customer base because of customers not having many vendor options in the market; if customers are satisfied with previous purchases, they are likely to order from the same supplier in the future.

Second, entering a niche market has lower associated advertising costs than entering the mass market because the products are designed for customers with identifiable preferences or needs. As SMEs have limited funds, they do not need to spend substantial amounts of money on advertising, which they might well need to do in the mass market.

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