ENT 670 – Market Assumption

Understanding a ventures position within the startup market could help better prepare and prevent failure. There are four types of startups, each with their own requirements. These types are:

• Startups that are entering an existing market
• Startups that are creating an entirely new market
• Startups that want to resegment an existing market as a low-cost entrant
• Startup that want to resegment an existing market as a niche player

One should not make the mistake in assuming each stage is the same or treating all startups the same (Blank, S. G. 2013). Market types have a huge impact on what a company does. This ranges from how they evaluate customer needs, market size, and how products are launched.

As a company goes through their respective customer development process, the importance placed on knowing the market type grows. To gain a better understanding of the market there are multiple factors that can be reviewed. One can research their designated products, distribution channels, pricing, product demand and more.

Reference:

Blank, S. G. (2013). The four steps to the epiphany: Successful strategies for products that win. Pasadena, CA: Steve Blank.