Category design

Eduardon

Category design is a business strategy and discipline that helps companies create, develop, and dominate new categories of products and services.

Category design extends beyond the leadership team’s narrower focus on products, company culture and business models . Taught in academia as a business and market strategy , [1] [2] it is Explicitly Deployed by disruptive innovation companies like Uber , Airbnb and other start-up brands. [3] [4] [5] Business magazines such as Harvard Business Review and Inc. have published articles on the value of category design. [6] [7] [8] Marc Benioffis an aficionado. [9]

History

Category design is

  • discovering and defining a category problem,
  • A clear story (called a point-of-view ) that explains and sells the category idea,
  • defining a category blueprint,
  • driving the category strategy across a company’s stakeholders (mobilization),
  • shaping customers’ thinking (lightning strikes). [10]

The concepts of biases as described by Daniel Kahneman . [11] The category of cognitive biases such as supportive bias and groupthink bias.

After the book was published in June 2016, Mike Maples , founding partner of Floodgate , published articles supporting the concept. [12]

The 6-10 law

Data research shows that “category kings” (companies that dominate the market category) [13] are the most popular VC-funded tech companies. Companies that go public sooner than six years old often lose value; companies that IPO after ten years old create little value for shareholders . The reason is thought to be six years in the making, and most of the time is in the six to ten year timeframe. After ten years, a category is established and growth slows, so share prices level off. [14] [1] This was discussed in Harvard Business Reviewtitled article “How Unicorns Grow”. [15]

See also

  • Cornering the market
  • New business development
  • Value chain
  • Value network
  • Value shop

References

  1. ^ Jump up to:a b “Dave Peterson: The Journey of Design Category | Stanford eCorner”. ecorner.stanford.edu . Retrieved 2017-07-16 .
  2. Jump up^ “Jennifer Johnson | Go-To-Market And Category Design Fundamentals | Heavybit” . Heavybit . 2017-03-29 . Retrieved 2017-07-16 .
  3. Jump up^ Snyder, Michelle (2015-06-17). “5 Essentials for Creating a New Market Category” . Entrepreneur . Retrieved 2017-07-25 .
  4. Jump up^ “Creating Category One Brands | Branding Strategy Insider” . Branding Strategy Insider . 2015-10-30 . Retrieved 2017-07-25 .
  5. Jump up^ “7 Strategies To Create New Business Categories” . Branding Strategy Insider . 2014-01-17 . Retrieved 2017-07-25 .
  6. Jump up^ “Why It Pays to Be a Category Creator” . Harvard Business Review . Retrieved 2017-07-25 .
  7. Jump up^ “How to Create a New Category for Your Product” . Inc.com . Dec 2014 . Retrieved 2017-07-25 .
  8. Jump up^ “Category Creation Is the Ultimate Growth Strategy” . Harvard Business Review . Retrieved 2017-07-25 .
  9. Jump up^ Development, PodBean. “022: Roundtable Entrepreneur: How to Design & Dominate Your Category? / Rhonda Smith – Part 2” . Retrieved 2017-07-25.
  10. Jump up^ “How to Design a Business That Dominates Its Niche” . Inc.com . 13 Jun 2016 . Retrieved 2017-07-16 .
  11. Jump up^ Griffith, Liz (2017-04-19). “First came behavioral economics – Now it’s time for behavioral marketing” . Linkedin Pulse . Retrieved 2017-06-27 .
  12. Jump up^ Stebbings, Harry. “Floodgate’s Mike Maples on what makes category kings | TechCrunch” . Retrieved 2017-06-27 .
  13. Jump up^ Lee, Roger; Lu, Jeff; Ravichandran, Deepak. “Keys to ascending the internet-consumer throne | TechCrunch” . Retrieved 2017-06-27 .
  14. Jump up^ “The 6-10 Law: Data Science Reveals How to Age and Money Impact Startup Value Creation | Sandhill” . sandhill.com . Retrieved 2017-06-27 .
  15. Jump up^ “Unicorns and Other Mythological Creatures” . harvardpolitics.com . Retrieved 2017-06-27 .