Your Revenue Driver
21 August Ecological Niche: Tollbooth Strategy (...impenetrable..)
This is the first in a series of three chapters on niche strategy.
The Tollbooth strategy requires that you be the path of choice to something much more valuable (or expensive) so that the cost of your offering is irrelevant.
The $.50 toll that puts me on a toll road to the airport is a minimal expense compared to missing the flight.
Drucker suggests fixing an incongruity with an internal process as a means of discovering this niche. The incongruity of our road system is that they perform best when underutilized and worst when needed the most (e.g. rush hour traffic.) Toll roads are theoretically designed as an alternative path for those that need the road to perform better.
If in fact the toll road does perform better than the alternative then it will have a nearly impenetrable competive position,
What alternatives do your clients have to your offerings?
What incongruities are a by-product of these offerings?
What is your tollbooth?
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