Some firms have a narrow market breadth. Rather than trying to serve all customers with a broad breadth, some firms focus on a specific customer segment. This article examines some of the advantages that come from a narrow market breadth.
Advantage 1: Cater better to the needs of a specific niche of customers
The first advantage of a narrow market breadth is that you can cater your entire operations to meet the specific needs of this niche. Tailing your operations to this narrow segment may allow you to better meet the needs of this niche much better than a company with a broader market segment.
Advantage 2: Clear company for individuals in that niche to choose
Because your company is better aligned and associated with this narrower segment, it may become the natural choice for customers that fall in that niche. Rather than shop around for a company, the customers may automatically come to your firm – allowing you to step away from price-based competition because customers value the tailored settings that you have.
Advantage 3: Difficult for larger competitors to cater or compete
The final advantage of a narrow market segment is that it can be difficult for competitors to enter your narrow niche. Aligning your entire resources to meet the needs of this narrow segment may prevent other competitors who have a larger niche from being able to effectively compete.