Niche Partitioning
The Dutch flower auction demonstrates niche partitioning: Dutch growers focus on tulips, Kenyan growers on long-stem roses, Ethiopian growers on summer flowers.
Markets can support many participants if they specialize and avoid direct competition.
Niche partitioning is specialization that allows multiple species to coexist by reducing direct competition. Species divide resources along dimensions: geographic (where), temporal (when), behavioral (how), or dietary (what). Each species occupies a distinct niche, reducing overlap and enabling coexistence.
Business Application of Niche Partitioning
The Dutch flower auction demonstrates niche partitioning: Dutch growers focus on tulips, Kenyan growers on long-stem roses, Ethiopian growers on summer flowers. Geographic and product specialization allows 5,000+ growers to coexist. Markets can support many participants if they specialize and avoid direct competition.