WRI, you've just described what happens to paintings of famous painters. When they die, they no longer can supply, forgers (your entrepreneurial spirits move in, so do art collectors, and art appraisers).

Agreed that is basically what I was saying, However the un-savvy company will fail, that's why I chose both A and B

I'm thinking B. A can be avoided if the margin is there. The company can keep its doors open. I expect that savvy companies in similar niches will see the opportunity and step in to fill the need. Then the company just has to be smart enough to have protected its intellectual property.

I like that answer Dusan. However, I would say the answer is both A and B due to innovation and the entrepreneurial spirit. For example finding a great niche with no affiliate program. What do ya do you? You create something to fill it Right .... In addition a company that can not meet the demand of a consumer base is in serious jeopardy of collapse unless an entrepreneurial force steps in with a JV offer and fills the gap. :)

Take a look at what happens to paintings of great artists and you have your answer.