Tyui

Tyui

As there are benefits for using a niche strategy, there will always be risks to using this strategy. (Kearney, 2008) confirms that there are risks for organisations using niche strategy. They are if profit has kept increasing over the period of time then there can easily be a loss because there are new players in the markets that have the power and capability of being able to push you out and make you weaker. This is most likely due to a fact that they can promote products/services to a wider market rather than just one small niche. A niche strategy is weak during a period of time because of its mistakes by management team and market segments will eventually be out of place. (Jones, 2003) can back this up by stating BlackBerry will have to widen their targeting strategy to keep up with its competitors, which is a drawback for a niche strategy. As there are benefits for using a niche strategy, there will always be risks to using this strategy. (Kearney, 2008) confirms that there are risks for organisations using niche strategy. They are if profit has kept increasing over the period of time then there can easily be a loss because there are new players in the markets that have the power and capability of being able to push you out and make you weaker. This is most likely due to a fact that they can promote products/services to a wider market rather than just one small niche. A niche strategy is weak during a period of time because of its mistakes by management team and market segments will eventually be out of place. (Jones, 2003) can back this up by stating BlackBerry will have to widen their targeting strategy to keep up with its competitors, which is a drawback for a niche strategy.