What are the benefits?
The company that manages to define a new marketplace gains untouchable brand equity. In addition, the company has the unique opportunity to be the industry leader, to shape the customer’s perception of the solution; and to create a connection in the customer’s mind between the brand and the solution.
When the marketplace is first formed, there is no real competition because no other company is offering the exact same solution to solve for the the exact same problem. The first wave of competitors will find it difficult to take away market share from the company because they will need to prove their solutions are better in some way.
More often than not, the company that shapes a marketplace usually holds the majority of the market share. Upon marketplace expansion, the company will be first to gain incremental market share; and the last the lose market share when the marketplace declines.