Niche market strategy

Market and actors The market for bio varnishes is rather a niche market (accounting for approximately 2% of the entire paint and lacquer market). Decisions to purchase bio varnishes are comparatively informed and conscious (at least this is still the case), similar to the decision to purchase organic foods (i.e. this is an ethical market). The manufacturers try to win over their customers confidence by means of brand strategies and transparency (full declaration). Germany is the lead market in this field. 

Molten carbonate fuel cells use a mixture of carbonates that are liquid at operating temperature—600°C to 650°C. MCFC, like SOFC, operates at a higher temperature than the PEMFC does it does not require a fuel reformer and it can be operated with a hydrogen-rich fuel. The MCFC s liquid electrolyte means more handling issues. It does not have the ability to be pressurized. The MCFC could serve a niche market of data centers and hospitals. FuelCell Energy has recently made a commercial offering of MCFCs. These fuel cells will probably not have the same market penetration potential as SOFCs and thus would likely have little or no impact as a transition strategy for H2 use. 

The following generic strategy model by Porter shows that a company either focuses on product differentiation or product cost leadership as a core element. Focus strategies address a niche market and have to distinguish the company from other competitors in the market segment the strategy either makes it a cost leader or differentiates it substantially from competitors in the niche market. 

Latacz-Lohmann, U. and Foster, C. 1997. From niche to mainstream - strategies for marketing food in Germany and the UK. British Food Journal 99 275-282. 

Figure 22.5 shows how product, customer, and market characteristics can determine different SCM strategies and design implications. For example, the strategic choice to serve niche customers with high price specialty chemicals is only tenable if the high-value inventory is centralized to reduce costs, and if a fast, responsive supply chain is set up to fill customer orders within the requested lead time from central inventory. 

As discussed in previous chapters, implementing value-added pharmacy services requires a comprehensive strategic plan that includes a mission statement, SWOT analysis, goals and objectives that the practice hopes to achieve, and strategies to achieve the objectives. This plan provides direction for the practice and guides the allocation of resources and efforts. As the scenario demonstrates, the planning process helped Carol, the pharmacist-owner, to identify a service that fits with the pharmacy s strategic plan and yet has a niche in the marketplace. Pharmacists can implement many types of services in their practices, but it is essential that they do some market research to determine the opportunities and threats in the marketplace to ensure the success of the new service. Also, it is important to assess the pharmacists motivations and abilities to provide a service. Ultimately, the success of any service depends both on market opportunities and the pharmacists ability to provide the service. 

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