Assessing the validity of a niche strategy model in predicting the potential and success of niche markets and products

Abstract

Companies can increase market share and profitability through the use of a niche market strategy. Parrish examined how companies use a niche market strategy and developed the Parrish Niche Strategy Model. This paper presents results of a study testing the model in terms of: (1) predicting the potential of a niche market and/or product and (2) predicting the success of a niche market and/or product. In order to test the model, deductive logic was used to develop questions that would gather quantitative data related to market potential strategies and success variables. In order to determine the importance of variables in relation to predicting the potential and success of a niche market and/or product, instrument questions were developed that utilized rank order scales. In addition, three-point Likert scales were used in order to determine the level of importance for each of the market potential and success variables. The sample consisted of fiber and yarn manufacturers, fabric manufacturers, apparel manufacturers and marketers, and retailers. Results indicate that the Parrish Niche Strategy Model was useful for gaging the potential and success of niche strategies, in terms of both product and market. This research was significant in that it tested the only existing model of niche strategies developed specifically for the textile industry. In addition, this study focused on bottomweights, which represents a significant domestic consumption market for the US textile supply chain.