Many valve companies are pursuing the 20% of the market yielding 80% of the Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA). The most profitable market is an aggregation of $10 million niches. There are ten $1 million sub-niches each with up to ten sub-2-niches which provide the targets for the local salesmen. Each sub-niche is shaped by a value proposition which will achieve a 40% market share and 30% EBITDA. The proposition explains why a specific plant will want to pay the premium price for a valve that provides the lowest total cost of ownership. This superiority is based on the relevant specific facts and factors. For a company to achieve highly profitable revenues of $400 million it needs to pursue 100 niches and 1000 sub niches.
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