MARKET SPACE

Creating New Market Space

Executive Summary

The main purpose of this paper is to discuss about the implications of new internet absed business. The company chosen in this paper is J. Sainsbury PlC. Most companies are focused on the match and beat their rivals. As a result of their strategies tend to take a similar measure. What ensues is a head-to-head competition is based primarily on incremental improvements in cost, quality, or both. Authors, Chan Kim and Renee Mauborgne from INSEAD, explore how innovative companies break free from a competitive package to a rate of innovative market space--that is, creating products or services for which there is no direct competitors.

Creating New Market Space

Introduction

The main purpose of this paper is to make an analysis on the ways of introducing new internet based business by J. Sainsbury. This path of innovation requires different competitive mindset and systematic way to look for opportunities (Kim 2010). Instead of looking at the limits of the normal defining how industry competes, managers can methodically look through them. By doing so, they can find unoccupied territory which represents real value innovation. For example, instead of looking at competitors in the industry, managers might ask why customers do compromise between replacement products or services. Home Depot, for example, looked through substitutes, serving the needs of home improvement. Intuit looked through the alternatives available to persons managing their personal finances. In both cases, the powerful ideas have been looking at familiar figures from a new perspective (Mauborgne 2010). Similar ideas can be found by looking through strategic group within the industry; different groups of buyers; various additional products and services; through functional emotional orientation; and even over time. To help readers to systematically explore new market space, the authors developed a tool that outlines the values that can be used to visually represent a range of value proposition (Kim, 2010).

Discussion

The purpose of this article is to describe how J. Sainsbury can seek value innovation, looking for potential innovation through six border competition. These six borders include:

Replacing industries

Strategic groups within industries,

Chain of buyers,

Additional product & service offerings,

Functional or emotional appeal to buyers and

Time

In its broadest sense, J. Sainsbury is competing not only with the company in its own industry, but also with companies in other industries that produce replacement products or services. If every decision of buying customers implicitly often unconsciously weigh alternatives. Going into town for dinner and a show? On some level you're likely to have the drive train or taxi. The thought process is understandable for individual consumers and industrial customers (Kim, 2010).

For some reason, however, we often leave this intuitive thinking when we become sellers. Sellers are rarely consciously as their customers make tradeoffs industries replacement. Changes in prices, changes in the model, even a new advertising campaign can cause tremendous response from rivals within the industry, but the same steps in replacing industry usually go unnoticed. Trade journals, trade shows and consumer, rating reports increased vertical walls that come ...