{"id":171923,"date":"2024-11-29T06:00:00","date_gmt":"2024-11-29T11:00:00","guid":{"rendered":"https:\/\/ict-pulse.com\/?p=171923"},"modified":"2024-11-28T15:44:24","modified_gmt":"2024-11-28T20:44:24","slug":"the-power-of-being-niche-why-specialisation-beats-growth-at-any-cost","status":"publish","type":"post","link":"https:\/\/ict-pulse.com\/2024\/11\/the-power-of-being-niche-why-specialisation-beats-growth-at-any-cost\/","title":{"rendered":"The power of being niche: why specialisation beats growth at any cost"},"content":{"rendered":"\n

Whenever business leaders want to highlight the importance of being innovative and not being disrupted, casualties such as Kodak and Blackberry are often mentioned. However, many of these businesses are still alive and well but have pivoted to cater to niche markets.<\/em><\/p>\n\n\n\n

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In the race for growth and market dominance, businesses often lose sight of their unique strengths. Although aiming for widespread appeal and increased market share can be a rewarding strategy, it is not always sustainable.<\/p>\n\n\n\n

Further, businesses are often encouraged to pivot and evolve to keep up with technology, with examples such as Kodak, Blackberry, and Blockbuster used as casualties of companies not being innovative and prepared to keep up with the times. However, with a little research, one would realise that companies such as Kodak and Blackberry still exist and are still operating \u2013 but are no longer the household names that they used to be. They, among many other once-dominant tech companies, in particular, have embraced the power of niche markets after their mainstream appeal declined.<\/p>\n\n\n\n

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A lesson from the past: Kodak<\/h2>\n\n\n\n

Kodak was once synonymous with photography, holding a dominant position in the film and camera industry. However, the company’s failure to adapt to the digital revolution led to its decline. After filing for bankruptcy in 2012, Kodak shifted its focus to niche markets like specialised printing technologies, professional imaging solutions, and even scientific research.<\/p>\n\n\n\n

Today, Kodak caters to industries like healthcare (with radiography and diagnostic imaging) and cinema (offering high-quality film for movie production). By narrowing its scope, Kodak found profitability in areas where its expertise remains unmatched.<\/p>\n\n\n\n

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A lesson from the past: Blackberry<\/h2>\n\n\n\n

BlackBerry once reigned supreme in the mobile phone market, known for its iconic physical keyboards and secure messaging platform. But as Apple and Android devices gained popularity, BlackBerry\u2019s market share plummeted.<\/p>\n\n\n\n

Rather than trying to compete in the saturated smartphone market, BlackBerry pivoted to become a leader in cybersecurity and enterprise software \u2013 which was always its strength. Its products now cater to organisations needing secure communication and data protection. This niche focus has allowed BlackBerry to thrive in a specialised segment, leaving the general consumer market behind.<\/p>\n\n\n\n

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A lesson from the past: IBM<\/h2>\n\n\n\n

From the mid-1950s, IBM was synonymous with computing, leading the market in hardware, personal computers, and mainframe systems. However, as competition in hardware intensified with the rise of companies such as Apple and Dell, IBM shifted its strategy.<\/p>\n\n\n\n

Today, IBM focuses on enterprise solutions, including cloud computing, artificial intelligence (AI), and quantum computing. Its flagship AI platform, Watson, was widely used in healthcare, finance, and customer service for predictive analytics and decision-making, and Watson\u2019s successor, Watsonx, is IBM’s cloud-based commercial generative AI and scientific data platform.<\/p>\n\n\n\n

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A lesson from the past: Nokia<\/h2>\n\n\n\n

Finally, Nokia was once a global leader in mobile phones, dominating the market in the early 2000s. However, the company failed to keep up with the smartphone revolution led by Apple and Android devices. After selling its phone business to Microsoft, Nokia reinvented itself.<\/p>\n\n\n\n

Today, Nokia is a key player in telecommunications network infrastructure and advanced technologies, particularly in 5G. Its expertise in network solutions has made it a critical partner for governments and businesses looking to build next-generation communication systems.<\/p>\n\n\n\n

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Why being niche works<\/h2>\n\n\n\n

From the above examples, and there are still more, these businesses have been able to survive \u2013 and even thrive \u2013 by stopping being \u2018all things to all people\u2019. Often, the change was triggered externally by market forces, but in many instances, these businesses ended up going back to basics and (in many ways) the niche field in which they began.<\/p>\n\n\n\n

Invariably, these businesses were able to tap into the deep and specialised expertise they possessed, such as in photography and imaging in the case of Kodak, and enterprise security in the case of Blackberry. Moreover, among their diehard customer base \u2013 those who knew the value of what they offered and not just mass consumers \u2013 there would be strong customer loyalty as their products addressed specific pain points. Further, in focusing on a specific segment of the market, niche businesses tend to face less competition and can command premium prices by offering highly specialised solutions.<\/p>\n\n\n\n

It should thus come as no surprise that niche businesses may be more equipped to be seen as authentic and trustworthy and are able to build genuine relationships with their customers. in turn, this relationship with their customers and their specialised focus can help buffer them from market-wide trends that can be volatile, allowing them to be more stable and resilient.<\/p>\n\n\n\n

Finally, in having a narrow focus, niche businesses can make more efficient use of resources. For example, in terms of product or service offerings, the business can offer a limited number of off-the-shelf products and services, but with the option for customised solutions or specialised builds being fulfilled separately and at a premium. If catering to mass consumers, a business may need to offer a broader range of products or services, all of which would need to be manufactured or maintained and offered at competitive prices, which could lead to much more waste in the long run.<\/p>\n\n\n\n

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Being niche may mean managing expectations<\/h2>\n\n\n\n

While the allure of growth and mass-market dominance can be tempting, it is not the only path to success. Carving out a niche market and catering to a specific audience can lead to long-term stability and success. Interestingly, companies that once dominated entire industries, such as those previously highlighted, have leveraged their deep and specialist expertise and were able to revitalise their business, thus assuring their long-term sustainability.<\/p>\n\n\n\n

In today\u2019s competitive landscape, standing out is not about being everywhere: it is about being indispensable to the right audience. Whether your business is a startup or an established company, finding your niche and serving it exceptionally well might just be the smarter, more fulfilling way forward.<\/p>\n\n\n\n

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Image credit: jannoon028 (Freepik<\/a>)<\/em><\/p>\n\n\n\n

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Whenever business leaders want to highlight the importance of being innovative and not being disrupted, casualties such as Kodak and Blackberry are often mentioned. However, many of these businesses are still alive and well but have pivoted to cater to niche markets.<\/p>\n","protected":false},"author":2,"featured_media":171924,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"off","_et_pb_old_content":"","_et_gb_content_width":"","om_disable_all_campaigns":false,"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[11],"tags":[71,53,205,204,222,15],"class_list":["post-171923","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ict-tech","tag-businesses","tag-competition","tag-entrepreneurship-2","tag-innovation-2","tag-strategy","tag-trends","et-has-post-format-content","et_post_format-et-post-format-standard"],"jetpack_publicize_connections":[],"aioseo_notices":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/i0.wp.com\/ict-pulse.com\/wp-content\/uploads\/2024\/11\/Business-man-pointing-graphs-and-symbols-strategy-jannoon028-Freepik.jpg?fit=1024%2C654&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p2iE1G-IIX","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/ict-pulse.com\/wp-json\/wp\/v2\/posts\/171923","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ict-pulse.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ict-pulse.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ict-pulse.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/ict-pulse.com\/wp-json\/wp\/v2\/comments?post=171923"}],"version-history":[{"count":2,"href":"https:\/\/ict-pulse.com\/wp-json\/wp\/v2\/posts\/171923\/revisions"}],"predecessor-version":[{"id":171926,"href":"https:\/\/ict-pulse.com\/wp-json\/wp\/v2\/posts\/171923\/revisions\/171926"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ict-pulse.com\/wp-json\/wp\/v2\/media\/171924"}],"wp:attachment":[{"href":"https:\/\/ict-pulse.com\/wp-json\/wp\/v2\/media?parent=171923"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ict-pulse.com\/wp-json\/wp\/v2\/categories?post=171923"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ict-pulse.com\/wp-json\/wp\/v2\/tags?post=171923"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}