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Creating New Market Space

The document discusses strategies for creating new market space and breaking free from competition. It outlines six strategies: 1) Looking across substitute industries to find solutions and new opportunities. 2) Analyzing strategic groups within an industry to identify gaps. 3) Understanding influences in the buyer chain and targeting overlooked customer groups. 4) Identifying complementary products and services to add value. 5) Appealing to functional or emotional needs of buyers. 6) Regenerating large companies over time through new offerings. The goal is to think outside the box to differentiate products/services and target new customer segments for additional profit and market share.

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Shashank Gupta
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493 views2 pages

Creating New Market Space

The document discusses strategies for creating new market space and breaking free from competition. It outlines six strategies: 1) Looking across substitute industries to find solutions and new opportunities. 2) Analyzing strategic groups within an industry to identify gaps. 3) Understanding influences in the buyer chain and targeting overlooked customer groups. 4) Identifying complementary products and services to add value. 5) Appealing to functional or emotional needs of buyers. 6) Regenerating large companies over time through new offerings. The goal is to think outside the box to differentiate products/services and target new customer segments for additional profit and market share.

Uploaded by

Shashank Gupta
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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ISB (PGID-72015026)

CREATING NEW MARKET SPACE

Todays world is so dynamic and volatile that if a wrong step or decision is taken in business
it makes up go back in the race. Managing profits of the business in this cut throat competitive
world is very difficult. Competitors find new ways to lead the market share so we have to be
very well aware of the different strategies which can be applied in our business by reading the
case study and understanding the important points. The CREATING NEW MARKET SPACE states
the way to break free from the competition, by using the value of creativity and innovation.
Out-of-the Box Thinking is very important for every business so that product and service
differentiation is possible.

All customers want an experience while shopping in today’s world which they relish and that is
how a little extra profit can be generated. The case study initially talks about bane of competing
in the same product line or category and then starts with few strategies to think out of the box
and create market share as follows.

I. Looking Across Substitute Industries: As we understand that companies don’t just compete
with its own industries but also substitute industries. How to create a new market curve and
Revolving around, looking for strategies across industries to find solutions for new market space.
Home Depot, Intuit and Quicken have been used for reference.

II. Looking Across Strategic Groups Within Industries: As we look in-depth within the same
industry and understand the strategy which is followed , we can compare our industry to that
understand where we lack or how advance we are compared to others. Strategic Groups Within
Industries can also be analyzed to find new market space. Few examples of Polo Ralph Lauren,
Toyota's Lexus and Champion Enterprises have been given in the article.

III. Looking Across the Chain of Buyers: In the Industry we should know what influences or who
plays an important role in decision making when a service or goods are purchased.
Understanding that and targeting that is important for business to grow and enter new market
space. It can be discovered by challenging or diverging industry's convention method and by
looking across buyer groups, to focus on overlooked customers and to redesign the value
curves. It happens in pharmaceutical industry, Office industry and Clothing Industry. Examples
of Bloomberg designed a system to offer traders better value, which was new and it took the
company to great heights. Philips Lightening company also used this strategy.

IV. Looking Across Complementary Product and Service Offerings: Untapped value is often hidden
in complementary products and services. By looking at this perspective new markets can be
created by carefully adding value, identifying and improving complementary products and
services.

V. Looking Across Functional or Emotional Appeal to Buyers: Functional-Emotional orientation of


an Industry can be used to create market space, this strategy is backed with few examples such
as Starbucks which created an emotional orientation with coffee and has become successful.
Similar examples of SMH , Body Shop etc. also have been mentioned.

VI. Looking Across Time & Regenerating Large Companies: These are last topics that are discussed
which give insight for market space in regard to the time and regeneration using few examples
like SHM , its collection of watches in Blancpain,Omega,Tissot,Longines and Rado etc. How they
create market as a central strategic challenge.

It was a very valuable source of INFORMATION which would be helpful for Marketing of
our own business and these strategies help us actually understand how markets work.

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