Have you found your niche? I received a lot of advice when I set up my company, but perhaps the most important consisted of just three words: Find Your Niche.



Five years later, I’m still struggling to apply this principle. Interestingly though, so are most of the companies I deal with.



So why is this, and what are we missing out on exactly? Well, let’s start by defining what a niche business is.



Per ChatGPT, it’s “a company that focuses on a specific segment of the market, catering to a particular group of customers with specialized needs or interests”.



Nerve Money provides a great example of what it means to be niche. If you have not heard of them, that’s because you are not a musician or comedian in need of a business banking app. You see, Nerve only focuses on delivering banking services to artists living in America.



Like all niche businesses, Nerve has a huge advantage in that it has fewer competitors. In the United States, thousands of banks fight for market share with similar products and services. But Nerve isn’t competing against the likes of JP Morgan and Citibank. Its founders believe they have found a differentiated offering that will appeal directly to American artists who want help with invoicing and payments.



But it’s examples like this that simultaneously highlight the benefits of going niche whilst scaring business owners away from trying to find theirs.



And that’s because size matters!



Nerve, for example, may face less competition, but they are restricted to the three million people who sing songs and play guitars. Most bankers I know would treat this as a passion project and would never imagine taking the idea to go niche to their leadership teams.



However, the fear that going niche means missing out on larger opportunities, is also a fallacy. Because niche doesn’t have to limit your upside.



In fact, some of the biggest and most well-known businesses in the world are actually niche.



Have you, for example, heard of Patagonia? Yes?



Well, they achieved global success by targeting outdoor enthusiasts who value high-quality, environmentally-friendly clothing.



Or, what about Nvidia?



Their initial niche was GPUs designed for gamers. And now they have found a bigger niche where they provide AI chips for data centers, with over 40% of their revenue coming from Apple, Alphabet, Microsoft, and Meta.



As an aside, at the time of writing, this niche business is now worth just over $3 trillion, and they are the second-most valuable company in the world.



That puts them just ahead of Apple, who many would argue also deserve to be considered niche.



So, niche most definitely does not mean small. It does mean narrowing your focus so you really zoom in on delivering quality, differentiated services that solve real problems and generate real value for your clients.



And what excites me most about this idea of ‘going niche to thrive’ is that the opportunity to succeed has now been amplified a thousandfold because of the arrival of artificial intelligence and large language models.



These technologies allow us, for the first time, to design and distribute an infinite array of products tailored to solve end-user problems in highly personalized ways.



If you’re wondering where the demand will come from, rest assured. We each have an endless capacity to imagine new problems, and each one, much like fingerprints, will always require a unique solution.



But will big businesses, like JP Morgan, have the wherewithal to use their capital and resources to create hundreds of differentiated brands that cater to every possible human whim?



Or will it be the century for startups, which, like Nerve, leverage the democratization of technology to collectively solve for these infinite use cases?



I don’t know, although I do have my hopes and suspicions.



Ultimately, whether AI drives huge consolidation or mass fragmentation, it is clear that in both cases, the spoils will go to those that move away from second-rate generic offerings to instead focus on niche services that solve our unique problems at scale. As business leaders, it has never been more critical to find our niche. So, I’m going to double down on finding mine. Have you found yours?

Marketing segmentation

Expert-Speak: ‘It Has Never Been More Critical To Find Our Niche’

The great poet William Butler Yeats once said, “Education is not the filling of a pail, but the lighting of a fire.” Yeats’ words could be viewed through the lens of societal impact – the impact of education on the world around us.



Necessary in this pursuit are multilateral relationships that strengthen development – locally, regionally and beyond. In Africa, the value of collaboration in this regard is immense. This is because these collaborations enable the sharing of resources, knowledge, and best practices, facilitating comprehensive growth and allowing us to collectively address common challenges.



Now, more than ever, we are realizing the role universities play in societies beyond the mandate of higher education. We are vessels for societal impact, and our scope is increasingly broadening and pushing our gaze outward. As we realize this vision, fostering collaboration among universities in the region and beyond is crucial. Universities need to provide guidance on moral, political and social issues. 



This is what I refer to as societal impact. This concept represents the effect of our research and work in the real world. It represents a shift beyond academia to the economy, society, culture and beyond. The emergence of an ‘engaged university’ represents a sphere where institutions actively contribute to societal development and address regional challenges. In this regard, it is wholly necessary for us to develop peer-led networks that significantly contribute to development.



Times Higher Education’s Chief Knowledge Officer Phil Baty in a report on university-industry collaboration writes: “Universities cannot fulfil their limitless potential without collaboration – collaboration between institutions, with industry and across borders.”



The very notion of collaboration needs to extend beyond higher education institutes. The Dowling Review of Business-University Research Collaborations suggests that strategic business-university research collaborations entail a range of benefits and allow challenges to be addressed by research questions that have tangible applications. 



Through these collaborations, researchers can have a tangible impact while improving their arsenal of skills. For industry, this collaboration allows for new techniques or technologies to emerge and extends innovation and expertise. As this thought suggests, there is great value in collaborating with industry.



Similarly, in a university and industry collaboration study, Othman and Omar assert, “Even though universities are known to pursue fundamental research as well as educating the people, they may not provide ready-made workers that are highly competent and capable of performing in any conditions.



However, universities do have the capacity and also capabilities to ensure that the workers capabilities are tailored to the needs of the industry.”



Indeed, as these ideas demonstrate, universities have a mandate that extends beyond their own walls – we have a responsibility to society to provide answers. The impact we can make together is significant. Establishing joint research and design (R&amp;D) projects between industry and research institutions in both countries can facilitate technology transfer and knowledge exchange and promote innovation in mutual areas of interest – particularly related to areas of sustainable development. Collaborating on skills development initiatives can address workforce needs and promote capacity building, particularly across borders. 



The economist Ricardo Hausmann argues that this is how the working population gains ‘know-how’, which he defines as a combination of implicit knowledge and experience. This knowledge transfer alongside capacity building initiatives speaks directly to inclusive economic growth and job creation. Hausmann’s thesis suggests that there is much more to be gained by international knowledge transfer, especially as countries such as South Africa look to ‘leapfrog’. 



Related to my previous point, facilitating the transfer of technology from research institutions to industry can also stimulate innovation and economic growth. Supporting entrepreneurship and startup incubation can spur economic development and job creation. Collaborative initiatives, such as accelerator programs or venture capital funds, can provide resources and mentorship to aspiring entrepreneurs in both countries. 



As Hausmann suggests, there is much more to be gained by widening these collaborations beyond borders. In the pursuit of societal impact, cooperation and mutual understanding creates a space where diverse perspectives converge, where innovative ideas are nurtured, and where the seeds of future collaborations are sown. 



As the United Nations (UN) Secretary-General Antonio Guterres once said, “I am deeply convinced that there is no other way to deal with global challenges than with global responses and organized in a multilateral way.” If this indeed is now our mandate as universities, then we must both offer and welcome collaboration – particularly within the continent as we seek to address many of our common challenges. This is how the very notion of the ‘engaged university’ emerges.

Networking people  with globe

EXPERT-SPEAK: Beyond Academia – The Societal Impact Of Multilateral Educational Collaborations

When I worked in large corporate environments, I often sought feedback. Sometimes, the feedback really hurt. But did it make me a better leader? Looking back, I’m not sure. Experience, experimentation, and learning from numerous mistakes were, in my opinion, far more influential.However, this article isn’t about how feedback can sting personally with questionable upsides; I’m actually proposing that companies reconsider relying on consumer feedback altogether.



Because, while it’s commonly assumed that feedback o  ers valuable insights, time after time, reality often paints a di  erent picture. Consider this: in a large Royal Automobile Club (RAC) survey conducted in the United Kingdom (U.K.) in 2017, a staggering 91% of drivers self-identifi ed as law-abiding. However, when comparing this self-assessment to concrete data from traffic cameras, 48% of drivers exceed the speed limits on highways. 



Fortunately, the U.K. government chose to ignore driver feedback and spent billions of dollars trying to fi nd ways to discourage speeding and improve road safety.So why do we often see huge discrepancies between self-reported beliefs and observed behaviors?



Social desirability bias, where we try to present ourselves in a positive light, is one possible explanation. Selective memory is another. In fact, there are many, many reasons why our opinions don’t align to reality.But it’s not just governments that need to be aware of the risk of making decisions based on people’s opinions. Companies do, too.For example, one of the most widely reported new product failures ever, was ‘New Coke’, a slightly sweeter drink that Coca-Cola introduced in 1995.Despite the fact they had feedback from hundreds of thousands of people that they preferred the new fl avor, when it was introduced on to supermarket shelves, no one bought it. 



It just didn’t sell. And people complained in their thousands, which ultimately led to the original version being reintroduced.What’s di  erent from the RAC survey though, is that this was a blind taste test, so bias should not have been a factor.So why didn’t people run out and buy New Coke in droves when those same people had said it tasted so good?Poor marketing? A deep-routed love for an iconic American brand? The fact that taste tests obviously do not align to how people actually consume drinks?



There are many theories, but it’s my view that business leaders shouldn’t waste time trying to unpack the differences between stated preferences and observed realities. Instead, they should focus on understanding what people will do in real-world scenarios by designing and running experiments that test actual behaviors in real-world settings.



The story of Five Guys showcases what I mean perfectly. If you have never had a Five Guys burger, I thoroughly recommend it, although you may need a second mortgage as they are expensive.Jerry Murrell started the burger chain back in 1986 in America by “finding a place where the store is out of the way, and where nobody can see it”. He didn’t advertise, and he only used premium ingredients.No market research. No focus groups. No consumer surveys.



His view was: “If we can put it where it’s hard to fi nd, but we still get people coming, then we know we’ve got something.”



Later on, as they were considering franchising, they tested market demand by placing a sign outside one of their stores, which read: “If you are in a hurry, there are a lot of really good burger places nearby.”Crazy? No, it was genius.Instead of trying to encourage people to eat their product, they actively dissuaded them.



Yet the queues still stretched out the door. And from that simple set of tests, Murrell knew he had a product that could be rolled out everywhere.



Compare and contrast to the likely outcome if he’d taken the more orthodox route and asked people whether they would be happy to pay infl ated prices for a product that was similar to others on the market, just with longer wait times?



Instead, by testing his ideas in the wild, observing behaviors, and adapting as necessary, Murrell was able to create a multi-billion-dollar franchise and develop a new market sector with premium stores in pretty much every major city around the world.So, stop asking consumers what they think. Feedback really does hurt. Start fi nding ways to watch what they do instead.



P.S: When the original Coke was reintroduced, sales rocketed, and it quickly regained its position as the world’s top-selling sugar cola.

Tag: Expert-Speak

FORBES AFRICA SOCIAL MEDIA

Expert-Speak: ‘It Has Never Been More Critical To Find Our Niche’

EXPERT-SPEAK: Beyond Academia – The Societal Impact Of Multilateral Educational Collaborations

EXPERT-SPEAK: Stop Asking For Feedback. Why It Can Really Hurt