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