I’ve posted a bunch on the power companies get from focusing. (You can search the site and see what I have had to say on this topic.) I ran across another example in the December 7, 2009 issue of Business Week. The story featured Siemens, a huge global company, that has been advertising a lot lately using the theme “Answers.” As I am not Siemens’ target customer I will refrain from commentary on that tag line or theme.
What got my attention was how this global powerhouse had focused on a niche in the “global wind power race.” Siemens apparently is in 6th place in this market with only a 7% share. As I discuss in my book, It’s Not Rocket Science, this position is a recipe for disaster in the long term. However, what you learn by digging deeper is that Siemens is actually #1 in off-shore wind power systems with close to a 50% market share.
Thier business grew 55% in the first part of 2009 (you may remember that was a castastrophic economic time for most companies). While off-shore wind power is still a small portion of the total wind power market, by focusing on this niche, Siemens has established a strong position from which to build.