Harvard Business Review on Rebuilding Your Business Model

Creating New Market Space

by W. Chan Kim and Renée Mauborgne

COMPETING HEAD-TO-HEAD can be cutthroat, especially when markets are flat or growing slowly. Managers caught in this kind of competition almost universally say they dislike it and wish they could find a better alternative. They often know instinctively that innovation is the only way they can break free from the pack. But they simply don’t know where to begin. Admonitions to develop more creative strategies or to think outside the box are rarely accompanied by practical advice.

For almost a decade, we have researched companies that have created such fundamentally new and superior value. We have looked for patterns in the way companies create new markets and re-create existing ones, ...