Pick the one that sounds better to you, I choose Niche Strategy.
I know you have heard niche all your life it is almost a cliché but here is something for you – niche is not just a strategy—it’s a pathway to sustainable growth and differentiation. This 5-letter word can propel your organization/business to new heights.
Here is what we will talk about briefly in this edition
- We will explore real-world examples
- Expert insights
- Actionable tips
Whether you’re a start-up looking to carve out your place in the market or an established business seeking to reignite growth I had you in mind while crafting this.
Here is something that might shock you – Tesla was not the first to try to build a successful EV vehicle. In the mid-late 1990s, General Motors built a car called EV1.
First, as a start-up, your competitor is not the one of the big boys hence you should not focus on the larger market just yet.
When launching new products, an incumbent like General Motors tries to go after large market segments right on (targeting the late majority). A startup with constrained resources must do the opposite.
To Tesla in the early days, it didn’t matter how small it was the niche it was going to tackle. What mattered was the ability to showcase the technology at first. This is a core difference, as whereas new entrants develop markets by starting from tiny niches, incumbents try to launch markets by starting from the masses! The former approach creates options to scale, where failure is cheap and bearable. The latter creates a scenario where failure gets so expensive that if the product doesn’t reach the masses, it will be withdrawn, and progress will be stopped for years!
Understanding Niche Strategy
At its core, niche strategy involves focusing on a specific segment or subset of a broader market and catering to its unique needs, preferences, and demands. Rather than trying to appeal to the mass market, companies employing niche strategy hone in on a smaller, more specialized audience—a niche—where they can deliver exceptional value and build a loyal customer base.
One of the key benefits of niche strategy lies in its ability to foster differentiation and competitive advantage. By serving a niche market, companies can position themselves as experts or specialists in their field, establishing a reputation for excellence and domain expertise. This focused approach allows organizations and SMEs, to tailor their products, services, and messaging to meet the specific requirements of their target audience, creating a more personalized and compelling customer experience.
Alright enough of the big grammar, let us have a little heart-to-heart. To identify your niche, you must note underserved or overlooked segments within your industry and assess the viability and attractiveness of these niches, finding your niche does not mean you need to be weird, niche is not the same thing as weirdness. Lol. I don’t have anything against weird people or entities though.
The principles of business are universal, if you stray from these principles in the name of niche, you will need to have many loan apps installed on your phone.
ICS Outsourcing is The Business Support Solutions Company in Nigeria and we have been here for 3 decades but our niche is still the most lucrative aspect of our business. I am not authorized to tell you this so try not to spill the beans. “We manage over 13,000 members of staff in Nigeria and Ghana”
Once your niche has been identified, you must tailor your products, services, and marketing efforts to resonate with the specific preferences and pain points of their target audience “short out the noise and don’t be in a hurry to start doing other things” FOCUS.
One notable example is Dollar Shave Club, a subscription-based razor company that disrupted the shaving industry by offering high-quality razors at affordable prices directly to consumers. By targeting men who were frustrated with overpriced razor blades, the company tapped into a lucrative niche market and quickly gained a loyal following, ultimately leading to its acquisition by Unilever for $1 billion.
It has been a pleasure sharing with you today, Until next time
Cheers
