Why take niche-and-next approach to cross the chasm?19029 2020-01-01 10:35
- Lack of customers
- Existing customer’s payment cannot cover the next period
- Unaligned demands from different visionaries
- Competitions from alternatives
- Unsatisfaction from investors
Analogy: it’s aggression, as the Allied invasion of Normandy on D-Day, Our long-term goal is to take over the mainstream market that is currently dominated by an entrenched competitor.
Solution: focus on a niche market that is
- Readily achievable
- Leverage-able for long-term success
If we do not take the niche, we do not worry about our next targets.
The niche-and-next strategy is counterintuitive and thus hard to stick to. If we do not adhere to it, it is like lighting a fire without kindling.
It is fatal to be a sales-driven company; our company should be a market-driven one. Unfortunately, following this strategy takes discipline because leaders can hardly resist the temptation to make short-term money.
The sole goal of the company at this stage should be creating a pragmatist customer base that is reference-able for the mainstream markets.
To achieve the goal, we must ensure the first set of customers completely satisfy their buying objectives with the whole product — a generic product that is needed for the customer to have a compelling reason to buy. The key indicator of this effort is the word-of-mouth reputation among buyers.
Another reason to be niche focused is that we need to achieve market leadership because pragmatists customers want to buy from market leaders. However, you are small and are still crossing the chasm, so the only available strategy is to take a “big fish, small pond” approach.
If you find this article helpful