If ten people make focused tools covering different 20% subsets of the giant ones, there's a good chance of having a choice that matches what any given customer wants. And for most customers, that's going to be a better match than a big tool that does tons of other stuff they didn't want.
“…good chance at having a match” might be a reach, as more use cases create a viable market.
Are your customers selecting one of five features in your product, or choosing any twenty from among a hundred?
How do the consumers find which of the dozen tools support the 20% they need?