Defining Your Niche Is Harder Than It Looks
NOTE: The follow article is based on the zoom presentation of Eric Doster, CEO of Dozuki, to Softec on September 14, 2020. A recording of the full presentation is available here along with slides from the presentation.
If you are interested in tech, start-ups, or related topics on the California Central Coast then you should join Softec.
Dozuki’s story is not atypical.
A company called iFixIt was formed by a couple of CalPoly students in 2003. iFixIt was focused originally on selling parts to fix computers and has evolved into a full knowledge base site for fixing many things (while still selling the parts necessary to do the work).
Along the way, iFixIt built a very robust internal publishing system for “how to” manuals. So – circa 2010 or so – decided to “productize” this system. Thus, Dozuki was born.
Dozuki has evolved over time – with an original attempt to “be for everyone”. But, eventually, Dozuki honed in on industrial companies. These companies need to document and standardize manufacturing processes to improve quality, efficiency, etc. By picking a clear niche, they now could focus sales, marketing, product etc.
End of the story?
Nope.
Now they face a new challenge. Even though they now have defined a niche that needs their product, that understands the “story” they are telling, and can actually afford to pay them – they have a new problem.
As they have built out the platform for this niche – they are bumping into a new form of competitor. The Learning Management System (LMS). A massive red ocean. So even now that they have a defined niche – they still need to clearly differentiate themselves from similar – and better known products.
In Dozuki’s case, it is by being clear that they are not an all-purpose repository of information (LMS), but rather a specific tool for delivering, documenting, assessing training.
However, our work is never done!
Eric did not mention it in his presentation, and it may not have happened yet, but it almost certainly will. What is “it”? Even as Dozuki has defined themselves as something different than an LMS, sooner or later, someone will appear w/ a new training platform defined as “not Dozuki because…”
Success attracts competition. And, competitors change all the time on their own, too, reacting to the same market forces as we are.
So be prepared to define your niche. Then re-define it again. As you, and everyone around you, evolves and adapts to a changing environment.
Speaking to my niche,
Joel