Is niche positioning considered a sustainable competitive advantage?


I’m wondering if niche positioning is considered a sustainable competitive advantage by the investment community?


Larry Chaityn

Larry Chaityn

by Larry Chaityn, President, Keiretsu Forum NY

Great question and way to be thinking!   The short answer is yes.

When determining the type of product/service there are 4 basic strategic options to consider:

1. Enter an existing market

2. Create a totally new market

3. Resegment an existing market as a low cost entrant

4. Resegment an existing market as a niche player

There are specific strategies with each.

Tell me a bit more about your product category, and I’ll try and give specific examples.

Comments & Advice:
  1. Excellent question, I would like to get your opinion on our venture. We are an enterprise software development company with emphasis on clinical laboratory systems. We have a very high end and comprehensive product that covers all possible workflows, and is highly integrated with other systems and hardware vendors. We have one code base but a highly configurable system, we custom tailor each installation to our customer specifications. We have a traditional deployment mode but a transactional pricing model.

    Hope this was enough info. Thanks in advance.