Josh Kopelman has a great article about shrinking markets:
“We love investing in technologies and business models that are able to shrink existing markets. If your company can take $5 of revenue from a competitor for every $1 you earn – let’s talk!”
When you shrink a market you simultaneously grow a substitute market. But I think there’s another piece to the puzzle:
The substitute market can end up bigger than the original market before it got shrunk.
There should be a name for this Shrink + Grow Bigger action.
It is similar to disrupting a market. But disruption doesn’t mean that the substitute market will be bigger than the market that got shrunk.
Anybody have a good name for this action?