The Study Of Domestic Integrated Circuit Material Supplier’s Niche Strategy

Niche strategy refers to the enterprise who concentrates all advantages and strengths to maximize the gains from a particular minority market subgroup, which business is selected through sufficient market segmentation and distinguished, and which business is ignored or without adequate services by a ruler or competitors having absolute superiority in the market, the enterprise itself has a certain competitiveness of this business at same time. The typical Niche strategy is starting from a local market, and then to the national and global market, developing along with a variety of market barriers and gradually forming a lasting competitive advantage. To survive and gain the development opportunities, the Niche strategy is adopted generally by the small and micro-enterprises or later-coming companies to against the existing competitors in the market.The dependence on foreign imports is still very serious at domestic high-end materials industry, typically at Integrated Circuit (IC) high-end material industry. Local integrated circuit material suppliers cannot meet the growing needs of domestic IC industry because their core competitiveness are not strong enough, their technology capabilities are relatively low and the homogenization of their services becomes a prevailing phenomenon.This paper is based on the case study of company A’s Niche strategy, who focused on integrated circuit high-end material business, adopted Niche strategy theory as the development guidance, caught the opportunity of the independent industrialization boosting of integrated circuit industry chain which driven by government, amplified the advantages of local supplier, gained the firm foothold in the intense market competition and started overseas development through its own research and development, manufacturing, marketing and service innovation actions. By studying the company A’s successful niche strategy experience, the author hopes to provide some theoretical basis and practical guidance to China’s domestic high-end material companies with the strategy and tactics of enterprise growth and the establishment of competitive advantage.