In general, it seems to me that as the Internet grows, you have to set your site apart from the pack with some angle or twist to get noticed. For instance, I have a specialized gift site that deals specifically with certain types of gifts. Essentially it's a niche site. It works quite well.

Does the same apply to the web hosting industry? There are so so many web hosts now offering the same product to the masses. Is it time to start going after the niche markets?

I'm halfway (well, 1/3 way) through building a new site www.waterwater.ca. It'll basically be an online information resource for the bottled water industry. But with a twist. I'll be offering web design and hosting to water companies (my captive market)...with specific web site designs tailored to the water industry.

In essence providing value added services...

Having been in the bottled water industry for 18 years doesn't hurt - I have a ton of contacts, and an intimate knowledge of the industry is an obvious necessity. But wouldn't this business model work for other industries?

Just thinking out loud...

Absolutely, and you will have far less competition than just throwing yourself out there in the big pool. You'd be able to cater to these companies as 'an expert', someone who knows exactly what they need (and want), and can set it up the right way (you have to sell yourself).

The only thing I'd make sure is that there is a need, or that you can create one. New markets are born by those that have the courage to tap into them, though I wouldn't open up an ice cube shop hoping to sell to all those Eskimos you know. It has to be realistic :D

Chicken:
Your point is well taken. And you are exactly right. Trying to be "everything to everyone" is tough. Target your marketing efforts to a specific group, and gear your site/service to be "the" resource for that specific group. As long as it's not, as you say, like selling ice cubes to eskimos.

Since I owned a bottled water plant for so long, I think I'm tuned in to what they want(need). Perhaps in a couple of weeks, when the site is complete, I'll throw it into your forum for a site review.