The Margin Gap
The more specialized you are, the more profit you keep - not because you work more efficiently, but because specialization changes who you're compared against.

Save this chart Download
The mechanism
The chart shows four bars rising left to right by how specialized the firm is: generalist, partial specialist, niche specialist, and dual-axis specialist. The profit each one keeps climbs from 15-20% up to 30-43%, and a dotted line marks the roughly 20% ceiling generalists rarely clear. A note says the gap isn't about efficiency - it's about who else is in the room. Specialization decides which firms a buyer weighs you against, and that comparison, set in the sales conversation, is what lifts the whole band.
Part of Positioning. Who you are for and why you are the obvious choice.