Niche competitors in a market are successful because they offer something that a main competitor does not. They offer the consumer an alternative choice that is attractive to them, thus gaining buyers from the main competitor.
Niche markets chip away at the main competitor by gradually attracting people over to their product through offering something new and innovative that is attractive to a consumer. An example would be the IMAX cinema. Its huge screens and pioneering of 3D showings have meant that instead of being a side show at a museum or gallery, IMAX now shows top box office films and as a result of this is gradually chipping away at the success of the cinema. It is successful because it is a more full on and surrounding experience. IMAX has now teamed up with Odeon cinemas, which increases its takings in the market. Although the cinemas have hit back by also showing films in 3D, the experience is not as immersive because the screens are smaller and so IMAX keeps attracting new customers.
Another example of the niche 3D market is the 3DS. This is a portable console that does not require glasses to see the 3D. It has revolutionised portable gaming and because no one else makes a product of this kind it is drawing customers away from consoles such as PC and Xbox.
A final example would be the 3D TV. This is still a niche because it is expensive but pulls in the customers because it is unique and an exciting feature to have in any home. It is chipping away at the 2D TV market because even HD TVs cannot match the picture quality of a 3D set. Eventually, the 3D market will grow to be the norm because the price will drop and it will be better quality.
Niche markets chip away at the main competitor by gradually attracting people over to their product through offering something new and innovative that is attractive to a consumer. An example would be the IMAX cinema. Its huge screens and pioneering of 3D showings have meant that instead of being a side show at a museum or gallery, IMAX now shows top box office films and as a result of this is gradually chipping away at the success of the cinema. It is successful because it is a more full on and surrounding experience. IMAX has now teamed up with Odeon cinemas, which increases its takings in the market. Although the cinemas have hit back by also showing films in 3D, the experience is not as immersive because the screens are smaller and so IMAX keeps attracting new customers.
Another example of the niche 3D market is the 3DS. This is a portable console that does not require glasses to see the 3D. It has revolutionised portable gaming and because no one else makes a product of this kind it is drawing customers away from consoles such as PC and Xbox.
A final example would be the 3D TV. This is still a niche because it is expensive but pulls in the customers because it is unique and an exciting feature to have in any home. It is chipping away at the 2D TV market because even HD TVs cannot match the picture quality of a 3D set. Eventually, the 3D market will grow to be the norm because the price will drop and it will be better quality.