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What market are you in? A simple question to ask but much more difficult to answer. However, it is becoming more important to consistently ask that question. The reason is that markets are changing frequently now and we need to understand who our customers are and if our company can succeed by changing the market and avoiding competition. The book Blue Ocean Strategy, by INSEAD professors W. Chan Kim and Renée Mauborgne, highlights 6 areas (paths framework) where conventional market limitations should be questioned and where companies should try to find new ways to define the market. This should have the effect of creating a new and less competitive position. Examples of these areas are: alternative industries, complementary products and service offers or trends and developments over time.
A common mistake regarding market limitations is to have a narrow definition of competition and maybe think of how a market used to be. Having someone in charge of strategy is common, but it is very unusual to have someone in charge of market limitations, although this is becoming more important. The Danish media group “Aller” has introduced such responsibility. The reason is that the change in the media industry is so overwhelming that they need someone who takes on most of the responsibility to define where and where not to do business.
