Broad versus Niche Market Strategy

Entrepreneurs start with a great idea and build a company to commercialize that. When the going gets tough they attempt to add new products and services to meet cash flow needs. If they try to do that consistently, they end up having a market strategy that caters to a broad market. Is this always good?

Walking into or driving through In-N-Out Burger, one can marvel at their simple model. They focus on a few items in their menu and do a great job of delivering quality to their clients. It is no wonder there are long lines for their offerings. This is a great example of adopting a niche market strategy.

Entrepreneurs need to seriously review their vision and mission to determine what is the most appropriate market strategy for them. Is it better to offer product/services to a broad or niche market?

If one can target a niche market and serve it very well, it offers a competitive advantage that might be beneficial in terms of premium pricing. If you are cost-effective in your offerings, you might be able to compete well with a broader market strategy.

Do the Right Things!

Ravi Patel

 

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