Niche strategy is a business strategy that focuses on parts of the market with little or no competition.
Who uses the niche strategy and when?
Niche strategy is typically used by startups who do not have enough funds for promotion, marketing and sales on the markets with little or no market gaps. Niche strategy is put in practice when a company comes up with a product or service that fills a market niche. Using this strategy, a rapid growth and even market dominance can be achieved very quickly (although the market might not be very large) since there is minimal or no competition in the market niche.
A successful niche strategy is characterized by narrow specialization of the product or service, targeting a narrow market segment or focusing on satisfying of a specific need. The offer must contain something very different from the existing - something new or innovative.