Disruptive innovation in practice
New Markets Blog
Read more in Capturing New Markets: How Smart Companies Create Opportunities Others Don't (McGraw-Hill, 2011)
Niche environments create space for new life forms. Like an undersea volcano surrounded by bizarre creatures, commercial niches enable new types of business models and enterprises to flourish. The niches also provide a foothold from which these businesses can step into larger and more competitive markets.
The challenge about niches is that they are abundant, and some will be as eternally isolated as those undersea volcanos. Picking your niche is a critical discipline. Four rules illustrate how to do this in a rigorous way.
Picking a niche is an endeavor where patterns of success are invaluable. In addition to the principles laid out above, consider who has succeeded and failed in creating niches in your industry. What rules can be discerned?
There is seldom one right answer to picking a niche, but there are definitely wrong answers. Thoughtful attention to these dynamics up-front can create large payoffs down the road.
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