Capturing New Markets

About the Author

Stephen Wunker, a renowned business strategist, has significantly influenced the field of market creation and growth. With a wealth of experience spanning over a decade, Wunker has developed numerous new growth platforms for clients across six continents. His work with Africa's largest cellular network and the creation of the first mobile internet device marketed outside Japan are just a few highlights of his career. Wunker has frequently contributed to esteemed journals such as Forbes, BusinessWeek, Managed Care, and U.S. Banker. His deep understanding of disruptive innovation, honed through his collaboration with Harvard Business School legend Clayton Christensen, positions him as a leading voice in the business strategy domain.

Main Idea

"Capturing New Markets: How Smart Companies Create Opportunities Others Don't" by Stephen Wunker explores the transformative power of new markets and provides a comprehensive guide for businesses seeking growth through innovation. Wunker argues that the key to thriving in today's rapidly changing economy lies in abandoning traditional success formulas and adopting unique strategies tailored to new market dynamics. This book offers practical insights into identifying, creating, and dominating new markets, emphasizing the importance of timing, niche targeting, and unconventional collaborations.

Table of Contents

1. Introduction
2. Why New Markets Matter
3. Finding New Markets
4. Assessing What Doesn't Exist
5. The First Customers
6. Paths to Market Penetration
7. Entering at the Right Time
8. Fulfilling the Potential of Emerging Markets
9. Enabling the Corporation
10. A Catalytic Role for Government
11. Afterword

Introduction

New markets have powered some of the greatest business successes in history, from Standard Oil to Facebook. Wunker begins by discussing the importance of understanding the unique dynamics of new markets, which often require counterintuitive strategies. Traditional success formulas are inadequate for these fast-changing environments. Instead, businesses must embrace new ways of engaging with customers, competitors, and stakeholders.

Why New Markets Matter

New markets are crucial because they can create vast new growth opportunities. While they might cannibalize some of the old markets, they expand overall consumption. For instance, cars significantly impacted the makers of buggy whips but greatly expanded transportation use. New markets generate economic growth through two primary avenues:

• New customers: These markets lead people or institutions to buy products or services they had not purchased before. Sometimes these products are entirely new, like Apple’s iPad; other times, they become newly affordable or accessible, such as cell phones in developing countries.
• New consumption occasions: New markets can also result from new consumption patterns. Colgate created a new market with its Wisp toothbrush, an ultra-portable single-use brush meant to be used on the go. Similarly, E*Trade enabled consumers to trade stocks far more frequently than traditional brokers.

“A new market might cannibalize some of the old, but it also expands overall consumption.” – Stephen Wunker

Finding New Markets

Wunker outlines six categories to monitor when finding new markets, emphasizing that these categories differ significantly from those in established markets: