Acquiring market flexibility via niche portfolios: The case of Fisher & Paykel Appliance Holdings Ltd

Abstract

Purpose

This paper seeks to establish that the instability of niche markets, and their predisposition to catastrophic collapse, makes market flexibility a prerequisite for long‐term survival among niche marketers. It describes the two ways by which a niche marketer can acquire this market flexibility and demonstrates the advantages of the second of these two approaches, i.e. the development of a portfolio of separated niches.

Design/methodology/approach

An in‐depth discussion of niche instability/implosion, and how niche market flexibility can be acquired to increase the survivability of such events, provides the context for a single in‐depth case study of a company employing a systematic niche market flexibility approach. A multi‐method approach was adopted drawing on both interviews and documentary evidence.

Findings

Planning for flexibility is essential for long‐term survival as a niche marketer. Two broad approaches to achieve this exist – i.e. contingency and portfolio planning – which are not mutually exclusive. The portfolio approach offers specific advantages and examples of its successful applications exist.

Research limitations/implications

This is a single case study.

Practical implications

The article has significant implications for practice, as fragmentation of markets and globalisation of production makes niche marketing desirable/essential for many players.

Originality/value

The area of planning for flexibility using a niche portfolio marketing strategy is under‐researched at present.

Citation

Hamlin, R., Henry, J. and Cuthbert, R. (2012), "Acquiring market flexibility via niche portfolios: The case of Fisher & Paykel Appliance Holdings Ltd", European Journal of Marketing, Vol. 46 No. 10, pp. 1302-1319. https://doi.org/10.1108/03090561211248044