New category vs existing market

by Ashvini on November 10, 2010 · 1 comment

in Entrepreneurship

In one of their well known books, Authors Al and Laura Ries bring out some of the interesting arguments about looking at marketing, branding and advertising in a new perspective.

According to the authors, most of the winnings happen in new category. For once Henry Ford remarked famously “You can have a car as long it is black”. That was indeed the start of a new market, new category.

It was a “Car” and it was “Black”.

There were no variants at all.

If you look today both of them have mutated into multiple categories. Following are the categories I can think of


Sedan,SUV,MUV, hatchback, sports, small, compact and so many



Blue, Green, Red and so many shades of them.

Every time someone says, a new category cannot be developed , here comes a new one. As far as I know these categories will mutate into sub categories and further.   The convergence is not happening while divergence is. Some days back people talked about convergence of devices such as televisions, computers and others. Since then each of the category has further mutated into multiple categories.

Now we have television such as flat , LCD, plasma, 3D and many more and we will not waste our time talking about categories of computers.

The question for an entrepreneur thus is to choose between the following

a> to create a new category by itself.

b>to compete in an existing category with innovations

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