Strategic Management of Market Niches

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Tình trạng: Sẵn sàng
Miễn Phí

Strategic Management of Market Niches

Gorazd Ocvirk (2018)

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INTRODUCTION

(1) Problem formulation (definition)
A field of research perhaps best known for its conceptual obscurities throughout the different scientific disciplines which entail it as a concept, the niche has held itself  as one of the core concepts of ecology. It has been invaluable for population research in sociology and uncontested market space in management science for over a century. The focus of attention of the thesis will be on the strategic management of market niches, where the research goal of this thesis is the construction of a comprehensive new market niche model framework in strategic management. The key elements developed in this model provide an extensive framework for the construction of a strategic management theory of market niches. The importance of market niche strategies has been gaining in relevance since the end of the twentieth century due to several different reasons. The main underlying reason for the emergence of market niches lies in the market/ industry maturity and the process of market commoditization, which is characterized by:
 the exhausted opportunities for new primary demand,
 the market structure is stabilized,
 cost leadership is becoming a major driving force of the competition,
 commoditization of the market,
 competitors search for an advantage in a variety of ways,
 positioning in industry or the market and targeting chosen segments is becoming important (“explosion of niches”).
This underlying process of market/ industry maturity transcends itself through the combination of several different factors which increases in (a) global competition and industry consolidation, (b) changing consumer preferences and (c) technological advances and are the most important ones (see figure IN-2).

 (a) The increases in global competition especially from Asian countries such as China and India and the rapid growth of some Eastern European countries, especially Russia2 in the last two decades, has led to sinking revenues and profit margins and an increased fight for existing market shares in saturated markets. In addition to a changing business environment companies will additionally have to face the looming global financial crisis, which will have a devastating effect on many industries across the globe.3 To maintain a high level of revenues and profitability companies increased their M&A activities, which can be seen in a high increase of M&A’s in value and number since 1990. This has led to an increase in industry consolidation, which occurs when a small number of companies control the majority market share in an industry within a restricted time frame and within the process of transforming a fragmented market structure into a concentrated one. Although this industry consolidation lead to a decrease in the total number of companies in a given industry, several companies apart from the industry leaders, still managed to remain highly successful and profitable on a smaller scale. These companies managed to apply a niche strategy which enabled them to gain and maintain a sustainable competitive advantage without threatening or engaging in direct competition with the industry leaders.5 This niche strategy also enabled them to remain independent throughout the industry consolidation process. The implementation of a niche strategy is not exclusive to companies who are not global leaders. Large corporations apply niche strategies as part of their business unit strategies or strategies for their subsidiaries. Although niches are not the exclusive domain of small and medium sized companies, the aspect of differentiating niche strategies in a company or business level has been largely neglected so far by both scientific and practice literature.
(b) The shift from supplier to buyer markets was another key element that contributed to the rapid development of niche strategies. This effect manifests itself through the individualization of demand.6 This is the result of an interplay among value proposition (where some elements of the value proposition are differently positioned or emphasized), perceived value of the customer and his/her willingness to pay. With the growing substitutability and homogenization of product .........

 

CONTENTS

List of figures ...................................................................................................... VII
List of abbreviations ........................................................................................... IX
Introduction ............................................................................................................ 1
Part I: Fundamentals of niche research ........................................................ 13
I.1 Historical development of niches in sciences ......................................... 14
I.1.1 The origins of niches in natural sciences ....................................... 16
I.1.2 Social sciences ............................................................................... 30
I.1.3 The role of niches in business sciences .......................................... 44
I.2 Niche definition for strategic management ............................................ 84
I.2.1 Strategic management .................................................................... 85
I.2.2 Definition of a niche ....................................................................... 94
I.2.2 Definition of a niche strategy ......................................................... 99
Part II: Theoretical pillar of the niche model framework .......................... 103
II.1 The historical development of dynamic capabilities ........................... 104
II.1.1 The beginnings of dynamic capabilities ....................................... 104
II.1.2 Formalization, definition and critique of the dynamic
capabilities paradigm ................................................................... 110
II.1.3 Future developments and outlook in dynamic capabilities .......... 115
II.2 Dynamic capabilities and strategic management ................................ 119
II.2.1 Market-based view and its connection with dynamic
capabilities .................................................................................... 121
II.2.2 Resource-based view and its connection with dynamic
capabilities .................................................................................... 125
II.2.3 Dynamic capabilities and niche strategies ................................... 127
Part III: Market niche model framework for strategic management ......... 131
III.1 What is a model framework? ................................................................ 132
III.1.1 Basic theoretical concepts and definitions ................................... 133\

III.1.2 Basic premises for model and theory construction in
management sciences ................................................................... 162
III.1.3 Model and theory in management sciences ................................. 171
III.2 Market niche model in strategic management .................................... 173
III.2.1 Descriptive and explanatory elements of the market niche
model ............................................................................................ 176
III.2.2 Limitations and reach of the market niche model ........................ 186
III.2.3 Implications of the market niche model ....................................... 193
Concluding remarks .......................................................................................... 197
Appendix ............................................................................................................. 201
Literature… ........................................................................................................ 205

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