I tend to target niche markets because the odds of me succeeding are much higher. It's much easier to be the best of a small niche and like the article said everything happens on a smaller scale, so less risk. Most the wealthy people I personally know made their money from owning a small niche.
It's easi(er) to own a niche market, but it's also more likely that anyone decently positioned to compete with you can wipe out your profits with small changes to their product or pricing strategy
Not all niche markets are small in terms of revenue/cost either: there are product niches worth millions (or even billions) whose actual feasible customer set barely makes it into double digits. But when the niche is that small in terms of customers you find that despite the lack of threat from competitors it's actually the customer that owns the niche....
That is true, but something else to focus on: with smaller niches, the learning that takes place is often much higher and faster, and that is invaluable too.
My app is the absolute niche of niche ( https://play.google.com/store/apps/details?id=com.pauldavids... ), but I learned A LOT, especially about the official Android publishing process. I don't care if it doesn't get used by many people, because my target market was literally 1 person: my girlfriend.
In addition, the process of making this app was fun. Learning AND fun; a goal that ALL of us here are striving for, right?
