Comments on: The power of being niche: why specialisation beats growth at any cost https://ict-pulse.com/2024/11/the-power-of-being-niche-why-specialisation-beats-growth-at-any-cost/?utm_source=rss&utm_medium=rss&utm_campaign=the-power-of-being-niche-why-specialisation-beats-growth-at-any-cost&utm_source=rss&utm_medium=rss&utm_campaign=the-power-of-being-niche-why-specialisation-beats-growth-at-any-cost Discussing ICT, telecommunications and technology Issues from a Caribbean perspective Sun, 01 Dec 2024 10:59:00 +0000 hourly 1 By: Kamutula https://ict-pulse.com/2024/11/the-power-of-being-niche-why-specialisation-beats-growth-at-any-cost/#comment-172622 Sun, 01 Dec 2024 10:59:00 +0000 https://ict-pulse.com/?p=171923#comment-172622 While it is true that “big is not always good,” a managerial and investment perspective would probably indicate that the dynamics are far more complex than the appeal of niche focus alone.

While understanding the strategic circumstances leading to such narrowing of scope, it is generally true that businesses often sacrifice more than they gain when they do so or find themselves in that position, leading to exposure to significant operational and financial vulnerabilities.

Consider Kodak: its revenue exceeded $14b in the 90s, compared to just about $1b in 2024. Additionally, the company is now more heavily leveraged, with a higher debt-to-revenue ratio than in the past. It can also be noticed that its revenue has been on a continuously downward spiral, in some years dropping by as much as 15%. In short, its niche technological focus is appealing, but its financial side is haemorrhaging.

This precarious financial position highlights a critical risk—any disruption to its niche could push it to a point of no return.

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