A Research on the Selection between Mass and Niche Market Strategy

As firms face increasingly intense levels of competition stemming from globalization, core competency becomes key to corporate survival and competitiveness. Only by adapting to the fast-paced market dynamic and leveraging the strengths and weaknesses can firms hope to survive and grow.
Through the use of surveys, interviews, and case studies, this paper analyses the incentives and motives of corporate decision-makers that underscore corporate strategy. In addition, it establishes the relationship between product life-cycle and market strategy. The data from the research implies that execution of strategy determines corporate success and failure of various industries.
According to the data, the mainstream market is controlled by two main factors: the size of the market and the distribution channel. Due to limited capital and resources, start-up companies usually choose to enter the market through a niche market. The data reflects three main corporate strategies relative to the market: ( 1 ) The contrasting strategies of niche players, who expand their core competency to multiple niches; ( 2 ) The failed strategies of corporations, which, due to drastic market changes and breakthrough firms, poor leadership in times of growth, ultimately lose sight of its core competency; ( 3 ) The successful market strategy for corporations – a line of products which revolve around a solid core competency, marked by constant innovation and steady growth. The result: A high percentage of success and a lower level of risk involved.
Therefore, corporate expansion must involve market positioning in terms of the core competency. The success of firms depends on the application of a powerful core competency in constant innovation and growth.