Learn in the textbookBasic Concepts of Competitive Strategy
DefinitionA niche strategy (ニッチ戦略) concentrates management resources on a small market that large companies neglect (a niche market) and builds an advantage there.
ExplanationWhen firms in an industry are grouped by market position, there are four types: leader, challenger, follower and nicher, and the niche strategy is the typical approach of the nicher, which devotes itself to a niche market. The leader is the top firm, a challenger is a high-ranking firm that goes after the top spot, and a follower is a firm that models itself on those above it. Even with limited resources, a firm that meets the needs of a specific customer group in depth can hold a strong position in that market.
AnalogyA small fish living in a crack in the rocks survives precisely because the big fish cannot get in there.
Memory hookA niche was originally a small recess set into a wall to hold an ornament. A recess in a big wall is a gap in the market.