In business they often talk about bundling unbundling cycles. In product, the countervailing forces are width and depth, that is to be as broadly applicable as possible, or as narrowly applicable as possible. The worst place to be is at the middle because one can neither reap the effects of being de facto solution nor fitted like a glove to a niche.
Going wide is typically suited for first movers within a new domain and those who seek to challenge them. To take a contemporary example, ChatGPT is the broadest solution in AI Chat today, and they established their position by being an innovator in the field. To play in this arena, new players will have to find nooks and crannies where ChatGPT is no longer a good enough solution, or, mount a full frontal with all the resources they can muster (against all of OpenAI).
The common saying in startup circles is that if one can find 10 customers, one can find 100 (there is risk of overfitting at one). At first glance, the business opportunity may seem enormously asymmetrical, but two things. First, financial rewards are disproportionate; the most lucrative is often overlooked. Second, product molded to specific niches may find a larger market available to them over time because the practices in those areas surface to mainstream (think tools like kanban).
First exist. Then play.