Written by Steven Chen, MBA.
Source: quickanddirtytips.com.
Overview
A competitive niche can sometimes build the economic moat for a business, especially small- or mid-sized ones. This happens because the narrower the target group is, the more effectively the company can compete with focused effort and resources.
However, there is also a potential issue with the competitive niche if the niche is so small or so specialized that it does not give an adequate return to the owners. Therefore, a check on the historical returns on capital is quite useful.
If the above is