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Tollgate Strategy


A market strategy (for market positioning) whereby a business firm occupies a very small niche to which no rivals are attracted. The first mover would solely dominate the market that is is small enough not to attract other potential movers. A tollgate positioning involves a product or service that is an essential component to the use or utilization of an existing product or service. For example, a highly specialized ingredient (like an enzyme) that is necessary in the production of a certain final product (a medicine) and the risk of not using by far exceeds the cost. It is dubbed “tollgate” in the sense as it allows a mover to have an advantage in a market not large enough to entice other movers.

This strategy belongs to the so-called ecological niche strategies (in addition to specialty skill strategy and specialty market strategy).



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