We have used Lego for the same reason. See my recent blog articles on the subject http://blog.scurri.com/2012/02/25/building-a-lean-startup-using-lego/ and http://blog.scurri.com/2012/03/22/the-lego-lean-startup/ We found it really helped us get in a bit deeper!

I think you’re missing a few key points —

>Hmm. The notion of marketing to a narrow niche audience to spur >growth and gain traction is largely a fallacy.

Brant was referring to simply “marketing to” narrow niche — but rather targeting and learning from an early adopter (as defined by Steve Blank) segment and leveraging that learning to cross the chasm, once it has been validated. Also, the context of this is a startup — which is radically different than large well-established companies with known business models.

>Not only do they have an inherent economic handicap due to a smaller >pool of customers/users, but research proves that smaller niche >audiences are less loyal, less appreciative, and more fickle when it >comes to brand loyalty.

Can you define “economic handicap”?

>I realize this research has been overlooked by a few recently >acclaimed pop-culture authors. Ahem.

>But if you think about this contrarian research, it actually makes >good common sense. Facebook only grew when they shifted their focus >from one college to the general market.

Facebook very successfully crossed the chasm — on that, I think we agree. They did so after they nailed the social networking value prop & use-cases.

>Neither Flickr nor Instagram focused on the narrow niche of >“photographers.”
>Google targeted “the world.”

I don’t you are correctly defining the segments that any of these former startups targeted either explicitly or implicitly.

>What these companies DID do – they focused on creating real value, >delivering great customer service, addressing a real market need.

Yes, on real value FOR A CERTAIN GROUP OF PEOPLE.

WRT customer service, I don’t know that any of the aforementioned are known for that.

WRT market need — definitely.

>Prove it before you promote it – yes. But niche marketing doesnt >always work; it can actually prevent you from achieving enough >momentum to become lucrative or sustainable.

As I mentioned earlier — niche marketing is not the same as finding a segment to validate a business model.

On a final note…disruptive thinking 100% of the time can be equally self-limiting. Simplification, reinvention, leveraging under-utilized resources, and incremental, continuous improvements can produce innovative solutions. Successful companies manage incremental and bold, disruptive initiatives simultaneously.

Have fun during this weekend’s Lean Startup event!

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