Ecological Niche: Toll-Gate Strategy

The toll-gate position also has severe limitations and serious risks. It is basically a static position. Once the ecological niche has been occupied, there is unlikely to be much growth. There is nothing the company that occupies the toll-gate position can do to increase its business or to control it. No matter how good its product or how cheap, the demand is dependent upon the demand for the process or product to which the toll-gate product furnishes an ingredient.
Once the toll-gate strategy has attained its objective, the company is "mature". It can only grow as fast as its end users grow. But it can go down fast. It can become obsolete almost overnight if someone finds a different ways of satisfying the same end use.
And the toll-gate strategist must never exploit his monopoly.

The Essential Drucker
Peter F. Drucker
Collins Business (2005)