Technological innovation path based on niche strategy: The case of BEIFA in china

Niche strategy takes some narrow business scope as starting point, through concentrating the input of resources and expanding market scope, finally become leading position in dominant market. The paper selected Ningbo BEIFA Group as example, and summarized the innovation modes, processes and approaches based on niche strategy. The paper shows that the technology innovation process of BEIFA can be divided into three stages: entering into niche market, occupying niche market, and global development. It has been managed in pen making segment market since its foundation and adopted operation strategy about “a big market with small commodities and mass production for small commodities”, constructed innovation ability through innocuous interaction between market extension and technology capacity growth and finally became the largest domestic pen making enterprise. Through the analysis, the paper argues that other enterprises can apply niche strategy to form core technology ability and build up enterprise brand.