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May 22, 2001
Q: I am with a large financial services company and have come to the conclusion your idea of niche may be important for the organization but it is impossible for each of us who work here to have a different niche. What I mean is that since we all sell essentially the same products to a similar customer base, I don’t see how I can possibly make a niche that different from other people here. What do you think?
A: I think the size of the organization doesn’t matter a whit. You can be a one-person show or one-person within an enormous organization and still make—indeed, require— a clear and powerful niche. As one person within the larger structure, it is critical that you make a clear niche for yourself, unless you want to be invisible and also very expendable when things change within the company. But your question is really asking “how?”
Here are a few tips:
Q: Although I enjoy your column very much, it seems to me that this whole thing of making a niche is much overblown in importance and will certainly disappear soon only to be followed by another “critical trend.” Although I think I know the answer, I’d like to hear/see your response.
A: Yes, you undoubtedly do know my answer. Simply put, “Niche is here to stay.” At least for the next decade. In fact, the concept has established itself firmly enough in our lives to increasingly be called upon in court! The following case in which I appeared as an expert witness illustrates the growing significance of niche in our lives and business.
It was a few years ago already that I first received the call from Ms. X’s lawyer. Ms. X is a retailer located in a large city in the Pacific Northwest. Her store, “Seaside Gifts” is located at a popular marina frequented by locals and tourists alike. In naming her store, Ms. X took into consideration its unique waterfront location. While products similar to those she carries may be found in other stores in the area, her “Seaside” location cannot be duplicated anywhere else in town.
Ms. X’s problem and the reason her lawyer called me was that Ms. X’s lease was about to expire. For a host of reasons her landlord did not want to renew the lease. Her landlord contended Ms. X could move and take her store anyplace else in the city and do just as well. Ms. X clearly did not want to relocate. Among other things, her lawyer contended:
2. Secondly, and of enormous importance in the legal arguments presented was the assertion that the local market was saturated with like products. Her counsel effectively argued (and I concurred) that Ms. X’s chances of succeeding by moving from her present location would be nil. She would essentially be starting a whole new business, creating a new name for her store, and entering a market filled with like products. Once again, the thing that distinguished her from all the other retailers in town selling similar merchandise was her location which was closely linked to the name of her store.
Thus, we see that Ms. X’s store became a destination. People were drawn to it because of the larger setting which was the real niche. Take that away and you would take away Ms. X’s livelihood. This, in essence, was her lawyer’s argument. The judge ultimately agreed and Ms. X and her store are prosperous ever after in their seaside location—oops, I mean niche.
As you would imagine, this case was neither as short nor simple as I’ve just described. The lesson we learn from it, however abbreviated the version, is that niching is no laughing matter. No simple fad. And it certainly is not a option.
And finally, this story reminds us that the niche we make for ourselves must be strong enough to stand up in no less a place than a court of law. If tested in court today, how would your own niche stand up?
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