Markets are often in a process of emergence, when new potential customers develop, driven by product and/or price improvements offered by suppliers, as well as by political, economic, social or technological change (“PEST”) factors. This customer development process has important implications, especially for type-1 rivalry.

Figure 1 shows market development for the consumer electronic device discussed in Briefing 46; a durable product that customers upgrade or replace – with a competitor (solid lines) and without (dashed lines). When building the market ...