Escaping the niche: how one company broke the mold

Abstract

Purpose

Companies may spend capital and effort to ensure the survival within their niche but have limited capacity to expand into other niches or broaden their target segment. This paper aims to provide insights into how they can overcome this niche entrapment – companies becoming trapped in the very niche they have cultivated, the weight and inertia of their investment shackling them to its continued existence.

Design/methodology/approach

Cedar Fair’s acquisitions and its organizational structure are carefully examined to illustrate the need for considering niche entrapment as a concept. To understand the complexities that firms face in their attempts to overcome the niche entrapment, this paper analyzes Cedar Fair using the concepts of categories and inherited identities.

Findings

The following important lessons are elaborated for helping business organizations overcome niche entrapment: embrace the organizational complexity; use gateway and complementary identities; consider brand disassociation; and achieve ambidexterity through a portfolio of offering.

Originality/value

This paper deviates from the traditional treatment of niches as a focus strategy that firms can select to build competitive advantages but instead provides insights into how those very niches can become constraints. It also conceptually evaluates the attempts to overcome these constraints from an organizational perspective instead of an industry perspective. Apart from using categories in a novel way, it also introduces a new concept of inherited identities, which are the organizational identities that firms inherit as they acquire and assimilate other firms.

Citation

Srikant, C.D. and Donovan, P. (2022), "Escaping the niche: how one company broke the mold", Journal of Business Strategy, Vol. 43 No. 2, pp. 96-104. https://doi.org/10.1108/JBS-09-2020-0202