How Niche Businesses Are Sometimes Formed

Someone sees a need and exploits it.


Did you need more?

Okay, here’s the long version as I see it:

Corporations, as they get larger (either from internal growth or from acquisitions) start to become less efficient. They become more legalistic and segmented. “That is not in my job description” is a well-worn, catch-all phrase that describes the segmentation and extreme control in this kind of work culture. Also when corporations purchase a niche business to gain .05% market share, they invariably ruin that niche business and turn it into a clone / adjunct of their big-business model.

Some people in this corporate environment eventually get tired of the inefficiencies of either small tasks falling between the cracks, the waiting for people in other segments of the business that you cannot have communication and/or collaboration with, or from the extreme micro-managing that tends to happen there. The person starts thinking “I’ve been doing this kind of job for X years. I can do my job and several others better (more effectively) than these people.

At least in a tiny sliver of the marketplace, a niche, a tiny business can make a killing. Corporations are literally spinning off niche businesses as a side effect of their internal business activities!

Niche businesses generally don’t need to, or can’t compete with multi-million / multi-billion dollar industries in the big spaces. The corporations aren’t particularly interested in them either (except for possible acquisitions), and can’t / won’t compete in the small spaces. I equate it to the large corporations reaching into a big bucket of coins and pulling out a fist filled with quarters, while nickels and dimes are slipping from their fingers and falling to the floor (that the niche players pick up).

Not really an Office Automation post, but it’s been percolating in my brain for the last few months.

Reply or send me an email, I’d love to hear what you have to say about it!


Charles McCrumb, Office Automation Expert
Herbert, McCrumb & Associates
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email: charles
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