Im not sure that anyone on this site really understands the word 'niche'. When I joined the site I was under the impression that it meant a hole in the market. But now Ive been a member for a while now it seems that niche really means 'topic'. People say what niche is on your site or something along those lines. Am I being really nieve and I'm missing something?
A special area of demand for a product or service: “One niche that is approaching mass-market proportions is held by regional magazines†(Brad Edmondson). Ecology. That example from your quote is the most relevant to it's definition in our industry.
Your spelling is the most naive thing Just kidding mate. A lot of people do mis-use the term. My understanding, in a business sense, is that it's a gap in the market is yet to be exploited. Usually it refers to a smaller market that can be profitable if monopolized by just a few. People put too much emphasis on finding niches these days, even if they aren't profitable - just so they can be the "big dog" in the small yard. It often comes down to this: There's a niche in the market, but is there a market in the niche?