Acquiring market flexibility via niche portfolios The case of Fisher & Paykel Appliance Holdings Ltd

Purpose - This paper seeks to establish that the instability of niche markets, and their predisposition to catastrophic collapse, makes market flexibility a prerequisite for long-term survival among niche marketers. It describes the two ways by which a niche marketer can acquire this market flexibility and demonstrates the advantages of the second of these two approaches, i.e. the development of a portfolio of separated niches. Design/methodology/approach - An in-depth discussion of niche instability/implosion, and how niche market flexibility can be acquired to increase the survivability of such events, provides the context for a single in-depth case study of a company employing a systematic niche market flexibility approach. A multi-method approach was adopted drawing on both interviews and documentary evidence. Findings - Planning for flexibility is essential for long-term survival as a niche marketer. Two broad approaches to achieve this exist - i.e. contingency and portfolio planning which are not mutually exclusive. The portfolio approach offers specific advantages and examples of its successful applications exist. Research limitations/implications - This is a single case study. Practical implications The article has significant implications for practice, as fragmentation of markets and globalisation of production makes niche marketing desirable/essential for many players. Originality/value - The area of planning for flexibility using a niche portfolio marketing strategy is under-researched at present.