Tuesday, January 27, 2015

Finding your Market Niche Maximizes your Business Size

The rate at which new companies enter a given market tends to decrease as the number of companies already targeting such market increases till their number finally reaches a top limit (the carrying capacity of the market) above which the number of companies working within this market start to decrease. Besides the number of companies working in the given market, also the size of the companies is also affected. As more and more companies start playing in such market their size tends to become smaller and smaller. A virgin market where few or no companies are yet playing can witness the growth of large companies whereas a market already saturated will more probably accommodate companies of smaller sizes or smaller operations of those companies. It is thus a no brainer to try to market a virgin market or a specific niche in which you can grow without competition in order to reach a large size.

This is the same with living organisms. The size of living organisms tends to decrease as their density within a given area increases.