Market Innovation

Market Innovation – How to make and shape markets
Kaj Storbacka

Innovate markets and escape maturing business

What is a ‘market’? Conventional managerial wisdom teaches us that markets are geographical areas, industries, or the aggregated demand for a particular product. Straightforward and easy to understand – but this line of thinking has led companies into maturing and commoditizing markets, where all players are involved in a zero-sum game.

What is needed is a change of perspective. Instead of considering markets as “given” places where demand and supply meet and reach equilibrium, we should understand that markets are dynamic social networks aimed at value creation.  Thus, companies can make and shape markets by introducing new ideas and business model elements into the network. This publication illustrates how the creative re-definition of markets, market innovation, offers considerable growth and profitability opportunities for talented firms.

Vectia Publication Series 2009:1