In the traditional concept of economies of scale, larger companies squeezed out their competitors by offering convenience and better values. We have seen the retail giant Wal-Mart mow down its smaller competitors with lower prices and one-stop shopping. It has been a long held belief that BIGGER WAS BETTER! But, in many industries, this belief is being challenged and smaller niche businesses are winning the battle of David and Goliath.

In high-tech, steel, airlines, automotive, and even retail industries, smaller niche companies are carving out a place in the market where their size is their advantage. A small business has the flexibility and agility to respond to the market with lighting speed and provide products and services that are specialized and unique to their industry. By not trying to be everything to everyone they have honed their products and services to answer a very specific sector of the marketplace. The key for small businesses is to find their niche and be the very best at it. This challenge is daunting and requires persistence and creativity. Many small businesses go through adaptations and changes as they search for their unique place. Often even the subtlest variations upon an established concept can create a niche.