New markets are like wormholes, where conventional rules of time and space do not apply. Chart a course to success using a ‘parallel play’ strategy.
From cloud services to smartphones, the past two decades have seen a vast number of new-to-the-world markets. Writing for Harvard Business Review, Rory McDonald and Kathleen M Eisenhardt say the most successful new-market pioneers share the same rules and behaviours. They offer a new strategic framework – parallel play – to help you chart a course and avoid the pitfalls.
THE LIMITATIONS OF CONVENTIONAL STRATEGY
In traditional business thinking, the essence of strategy is performing activities differently to rivals. A winning strategy positions you to deliver value better than anyone else: to distinguish yourself from the pack. In a new market, however, conventional strategic frameworks don’t apply. When a market is just forming, you can’t know which points of distinctiveness are likely to be most important to customers.