Whether it's architecture, construction, music or law, the survivors in this economy are ones that have a well-defined niche.
During the last boom, most companies resisted creating a niche for themselves. They wanted to be as many things to as many people as possible. And, the market wasn't particularly punitive if they weren't well-niched. Well, it is now.
The companies surviving and even thriving in this economy are ones that chose their niche based on their expertise, the market demand, and the competitive landscape. One of my valued clients, SportsPLAN Studio, is thriving in this economy because they are specialists in sports architecture. With over 500 projects to their name, they are truly specialists. This economy has affected them but they are surviving, even thriving, in this market.
There are other companies that have almost folded under the stress of the economy. The reason? They had a niche but it was one too closely tied to market demand that was speculative. The importance of looking at the robustness and the longevity of the market before choosing your niche cannot be underestimated.
There are others who have chosen a niche that is saturated but with style and purpose they have risen above. For example, in the music industry, The Arizona Republic quotes Chris Sampson, dean of the popular music program at the University of Southern California (my grad school alma mater) as saying about Beyonce', Taylor Swift, and Lady Gaga, "What has made each successful is that they have carved out a very specific niche for themselves. That comes from that level of focus, knowing who they are artistically, and almost as a brand."
Others choose niches that are tiny in terms of competitors but big enough to support the business and the mission of the owners. For example, PK Bootmaker, a specialized boot maker in Southern Arizona has a unique and somewhat "tiny" niche but has been successful in dominating the custom boot market.
When I emphasize this point to clients they resist. Heck, even I resist with my firm. Yet, it is critical to choose your business niche and dominate it. The chances of surviving, thriving, and then, dominating your market are much higher and long-term success is inevitable.