Tuesday, January 19, 2010

Gauging whether specializing is a good move

Specializing in a specific market segment can give you the momentum you
need to power past your competition, but it may not always be the right
approach for your operation. The segmentation strategy may work well for
you if
  • You think your business can be more profitable by specializing in a morenarrowly defined segment than you do now.
  • You face too many competitors in your broader market and can’t seemto carve out a stable, profitable customer base of your own.
  • It takes better advantage of things you’re good at.
  • You’re too small to be one of the leaders in your overall market or industry.Maybe you can be the leader in a specific segment of your market.