Product 40758 (BH074) has no authors
Published in:
"Business Horizons",
2002
Published by:
Indiana University
Length: 5 pages
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Abstract
You can choose from 4 key strategies to systematically create and master new markets. Path 1 is to start from a blank slate with unknown customers and unknown products. This is the most exciting path to take, but the most formidable and riskiest; Path 2 is to deliver new products to known customers; Path 3 takes known products to unknown customers; and Path 4 is building a new market with known customers and known products-- usually results in product line extensions and runs the risk that you will become defined by your knowledge. The opportunity to create and dominate a new market offers the prospect of working without competition and with increased margins. However, the firm must choose the path that leverages its knowledge. It is important to remember that the product is not just the device or service, but also the delivery process, customer interfaces, and support systems. Examples from FedEx, AT&T, GlaxoSmithKline and other companies illustrate the pitfalls and advantages of each of the 4 paths to new market strategies.
About
Abstract
You can choose from 4 key strategies to systematically create and master new markets. Path 1 is to start from a blank slate with unknown customers and unknown products. This is the most exciting path to take, but the most formidable and riskiest; Path 2 is to deliver new products to known customers; Path 3 takes known products to unknown customers; and Path 4 is building a new market with known customers and known products-- usually results in product line extensions and runs the risk that you will become defined by your knowledge. The opportunity to create and dominate a new market offers the prospect of working without competition and with increased margins. However, the firm must choose the path that leverages its knowledge. It is important to remember that the product is not just the device or service, but also the delivery process, customer interfaces, and support systems. Examples from FedEx, AT&T, GlaxoSmithKline and other companies illustrate the pitfalls and advantages of each of the 4 paths to new market strategies.