Your firm is focusing on a single segment so you can concentrate on understanding the needs and wants of that particular market .
There will be less competitors in the market when firm selects niche segment to serve.
Moreover, the firm can get strong market position due to greater knowledge of consumer needs in niche market.
However , the disadvantage is that the firm needs to be sure that they have selected the correct segment of the market as there is a single segment to target.
Rolex is example of company who applied concentrated targeting strategy.