Just to add a little to your excellent advice: #1 could be an intangible improvement over existing offerings, such as better customer service, better (or no) c

Just to add a little to your excellent advice: #1 could be an intangible improvement over existing offerings, such as better customer service, better (or no) contract terms and/or pricing, etc. Something that's been talked about here before is offering localized versions of popular services, such as the dating sites tailored to the local culture of Japan (or was it China?) due to the large difference in the way that dating work over there as apposed to western countries. This could make #2 much easier to accomplish, if your offering is a better match for a specific subset of possible customers, but I guess that's the definition of finding a niche market, huh?