If the innovator succeeds, it will have a nearly impenetrable position.
The fourth major entrepreneurial strategy, occupying an ecological niche, allows an innovator to establish a virtual monopoly in a small niche market. The first niche strategy is the tollbooth strategy. Under the tollbooth strategy, the innovator creates a product or service that is an indispensable part of a larger process. Then the cost of using the product becomes eventually irrelevant. Here the market must be so limited that whoever occupies the niche first is able to effectively bar anyone else from entering it.
Here is an example: Alcon, a company started in the late 1950s by a salesman for a major pharmaceutical ...
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