Niche Top Strategy for Cross-fertilization

2018-01-09

• There is a need in the world for someone who has both Knowledge A and Knowledge B.

• Consider the following three

  • Who invested 100 time in knowledge A (100, 0)
  • 100 time invested in knowledge B (0, 100)
  • Who invested 100 time in both (50, 50)

• If the utility is just a sum, they are all the same.

• But in a situation where "we need someone who has both Knowledge A and Knowledge B," it is hard to imagine that someone with zero knowledge of either domain would be selected.

• That is, a utility function that evaluates both in moderation, such as min(a, b) or a * b.

• Since such a need actually exists, the "cross-fertilization niche top strategy" attempts to fulfill that need by studying multiple fields. A term coined by Nishio.

• It was not clearly verbalized, but in retrospect, we had repeatedly referred to similar concepts since 2011.

• In the above model, knowledge is gained linearly with time invested.

  • If there is diminishing knowledge gain, it is advantageous to learn more than one field of study, even if the utility of mere sums

• While it is possible to think of knowledge gains increasing, a model in which only the top players in the market monopolize utility seems more realistic.

• bele_m

  • Point out that when considering the formation of a multi-person team, combining (100, 0) and (0, 100) results in a large overhead cost for coordination of interests due to differences in thinking and priorities.
    • Breadth of Learning and Overlap Relationships
    • Venn diagram of knowledge and communication costs

2025-02-19 Relationship to the premise "Niche Top Strategy"

• A niche-top strategy is one that focuses on a specific, fragmented niche market rather than a broad market and aims for the top share in that field. Companies establish a competitive advantage by developing expertise and providing unique value in areas where large companies are thin on the ground.
• In personal survival strategies, it is sufficient to establish a competitive edge in a fragmented niche market rather than a broad market to generate enough income for an individual to survive.
  • The way to create this "subdivisioned niche market" is "multiplying".

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