
The Difference Between Existing Markets and New Markets - mgav
https://larrycheng.com/2015/01/21/the-difference-between-existing-markets-and-new-markets/
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mgav
An existing market is a market where customers already spend money buying more
or less the same product or service that a given company is selling. That
product or service may be delivered or sold in a different way, but at the end
of the day, the customer that you’re targeting is already spending money on
substantially the same thing...

A new market is a market where the end product or service is new – in other
words there isn’t really existing demand, but there could be...

When investors and entrepreneurs go after a truly new market – the advantage
is usually there are not entrenched competitors so if the market materializes
as quickly and dramatically as they hope, market leadership is more
attainable. In addition, new markets can grow exceptionally quickly, far
faster than existing markets – and a rising tide can lift all boats as the
saying goes. So, there is no doubt that you can win and win big in a new
market. That being said, the risk one takes with a new market actually
emerging is often profoundly underestimated. My guess is the most common
reason companies targeting new markets fail is primarily because the market
never really emerges at the pace and size that the company and investors
expected. You can have great management, a great product, excellent sales and
marketing, but if the market isn’t there, then it’s easy for a company to get
stuck. It’s hard to have good product/market fit, when there’s no market after
all...

