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A market niche strategy simply refers to a potential segment of a given market into a niche. The main focus of the market niche strategy is based on customer needs and wants satisfaction (Gamble & Thompson, 2011).   It is useful in curbing the existing differences on both social and cultural within a nation. Raytheon Company in US has invested in various sectors in the process of providing service to the citizens. Through the Homeland security, they have been able in uniting the American by providing the required security at all levels. It has set its branches in remote areas for effective and efficiency in the service provision.


Niche targeting enables the company to clearly focus on the needs of the consumers at individual level thus ensure relevant information is provided to the clients at all levels of the niche. It also offers a wider coverage that is potential for the company in the niche. The process of working with multiple niches enables the company to spread its business risks. It has the capability of attracting larger number of lesser paying the direct advertiser base which in turn reduces the risk to income (Gamble & Thompson, 2011). The site also attracts direct advertisers as the niche has a larger audience target thus making it cheap to advertise than on the generic sites.


Niche markets over time have been known to contain relatively smaller number of advertisements within the niche. It is normally difficult in the process of filling up an advertising inventory in such type of niche. The sites existing in such niche have smaller traffic generations which in turn attract less audience as they lack the interest in the niche. Most of the niches have a degree specification which makes it more vulnerable to the current economical changes in the market. This affects the lifespan of the niche which may lead to a short-term. It is only possible for one to develop a market share in a niche when the other larger competitors are not available.

Niche strategy has actually brought about the ability of becoming a dominant player in any upcoming market niche. Despite the limited pool of competitors, it allows for more development which in turn opens up a competitive market for its consumers.

Raytheon Company is one of the largest major American defence contractor and an industrial corporation. It mainly handles military weapons and commercial electronics in the US.  The company is disintegrated into defence, technology, training, homeland, border security and the cyber security in the US. The company is vertically integrated as seen through its value chain. The diversification of its core duties and responsibilities in the American economy illustrates the usefulness of vertical integration.  The process of expanding the Raytheon business activities to venture into variety of units like technology, defence, cyber security and homeland has enabled it to serve the whole American population.

Vertical integration is an optimal economizing strategy in the presence of asymmetric exposure to expropriation (Gamble & Thompson, 2011).  Firms which are more exposed to expropriation benefit the most from the increased power provided by integration. Generally, there is, in the real world, a continuum of specificity degrees, as the degree of specificity increases, the market becomes less and less feasible for some firms and integration becomes a better response to the hold-up problem.

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