Niche vs. mass solution?

One of the more delicate considerations of founding a startup is the choice of industry, and specifically the approach to that industry: do you go for a mass-market solution, or for a more niche one?

A niche one, by definition, will result in a smaller audience and lower potential in maximum revenues, but a mass-market solution often sees much fiercer competition from regional and international rivals, who are all looking to get a larger slice from the larger pie.

Amazon, the mass-market solution for e-commerce, however, has been moving into more niche industries, including grocery shopping, web services, books, and more. During a podcast of Harvard Business Review, professor Sunil Gupta dives into the specifics of Amazon, and whether it is setting itself up for astronomical success or ultimate failure by moving into all these industries.

According to investors in the stock market, Amazon knows what it is doing. as stocks of companies in a particular industry tend to decline significantly once Amazon announces that it is going to enter that industry. However, what are the implications of that? Listen to an in-depth podcast on Amazon’s prospects, and whether you should focus on a niche or mass-market solution, here.