There are many influences behind why category design works. Economist Paul Geroski’s theses behind the category lifecycle demonstrates how a company behind a dominant category becomes the chosen vendor – and wins the category. He goes back to the 1800’s when the automobile industry emerged to prove it.
You can’t build a legendary company without building a legendary category, and if you think that having the best product is all it takes to win, you’re going to lose.
Excerpt from Business Insider:
“The ability of companies like Facebook, Salesforce, and Uber to suddenly establish and dominate a new part of the market may seem new, but an economist who died before many of them even got their start helps explain the sudden power of these firms.
Paul Geroski was born in the US but spent most of his adult life in the UK, first as a professor at several universities and then as chairman of the UK’s Competition Commission. Geroski died of cancer in 2006 at age 52, but his 2003 book The Evolution of New Markets should be studied by every entrepreneur who wants to develop and dominate a new market category.”
Read the full article: The domination of tech giants like Uber and Facebook isn’t a problem — it’s part of a natural cycle