The Niche Effect

The Niche Effect

  • Submitted By: charles2
  • Date Submitted: 11/30/2010 2:04 PM
  • Category: Business
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The Niche Effect

Charles W. Sutphen Jr.

Dr. Brian C. Grizzell PhD.

Introduction to Business

October 26, 2010

There are many challenges when starting up a business, three of the most important challenges are, 1.) First you must decide which product or service you would like to offer, because without a plan you have no direction 2.) You must acquire the necessary funding to purchase the storefront, licenses and or permits to set up your shop, with the exception of the storefront the permits and licenses make it possible to avoid the possibility of your competition to use legal means to push you out of business 3.) You must purchase the proper materials or equipment to produce the product or provide the service. You may decide to offer items that cater to a particular clientele as Richard and Judy Hayne and their friend Scott Belair, they decided to open a store back in 1970 they called the Free Peoples Store which catered to the collage crowd, they offered such things as tie-dyed T-shirts, Imported incense burners and Madras bedspreads, that was their “niche” products, a “niche” product is a product (or service) that serves a smaller segment (niche) of the market, three examples of “niche” products are 1.) The “Muscle Cars” such as the Dodge Charger, the Ford Mustang, and the Pontiac GTO which were pursued by those who desired the power and speed 2.) The Motor cycle which is for those who like the freedom they offer, two wheels, the open road, the wind in your hair, the serenity of being out there alone, 3.) And the Mini Van for the moms who need the extra space for their kids car seats and groceries. A “niche” company would have an advantage in a market because they have a more focused clientele so they may focus on providing personal customer service to their customers and in turn cultivate better relations with those customers, after all you are in business to serve your customers and what better way to serve them than getting to...

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