Nascent Market

Published by MBA Skool Team, Last Updated: March 31, 2015

What is Nascent Market?

It is a new, developing market. Smartwatch for example is a new avenue for the smartphone makers.Companies and entrepreneurs always look for a nascent market as they can get ahead in the learning curve of the market. By the time a new competitor comes this company already has established control over the market.

They enjoy uninterrupted operation in this market before these competitors and rules and regulations follow them.

E-commerce in India, for example, was a nascent market 3-4 years back. There were too few websites which operated. Flipkart pounded on the opportunity and developed a good control over this market in the past years. Soon sites like Snapdeal, Amazon, Myntra etc followed and government regulations over the investments from foreign investors in these businesses were applied.

There are 3 ways in which a company can establish control over a nascent market.

1. Claiming market – Develop a unique business model for this market and make it synonymous with the company’s operations.

2. Demarcating market – Invest heavily to create a territory for the company. This will discourage other companies to enter in this market.

3. Controlling market – Establish entry barriers in this market to prevent competition. It can also be done by acquiring small businesses which pose threat or can be accumulated to take on a bigger competition.


This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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