Evolution of new markets: US 19th c natural ice industry - Essay Example

Evolution of New Markets: US 19th C Natural Ice Industry The history of the natural ice industry in the US especially between the 1910s and 1940s represents a typical case of emergence and development of new markets. It is important to note that markets evolve through a typical systematic process involved different stages of growth. According to Geroski (2003), the development of new markets is not accidental but rather goes through a recognizable process involving common phases. This view is supported by the concept of product life cycle, which presents the series of stages through which a new product or market undergoes since introduction to decline (Stark, 2011).

According to Saaksvuori and Immonen (2005), the characteristics of the market or product change at each stage in the product life cycle. This paper focuses on two aspects in the evolution of the natural ice industry in the US between 1910s and the 1940s. These include the innovation period and the growing competition. The period between the 1910s and 1940s represented the growth period of the natural ice industry in the US. Apparently, the industry was still new and gaining root. Early starters such as Frederic Tudor established this industry.

Because they initiated the business, they enjoyed the advantages of being the first movers. According to Suarez and Lanzolla (2005), the first-mover advantage refers to the benefits that a firm that pioneers in a new market accrues such as rapid growth and monopolization. As first movers, they were able to develop innovations to enhance the natural ice business. One of the greatest innovations in the industry was the ice plough, which was patented in 1825 by Nathaniel Wyeth. The ice plough transformed the harvesting of natural ice by making it easier, faster, and less costly to cut the ice from the ponds.

This innovation became popular among the main players in the industry including Tudor. Other innovations that came up after the ice plough included snow crappers, and specially designed saws. The major impact of these innovations was the reduced of ice prices by a third (Utterback, n.d., pp. 4-5). Apart from innovation, the industry experienced a growth in competition. While Tudor and a few others had pioneered the industry and monopolized it before, new competitors started emerging because of the realization of the market potential.

For example, Mr. Hittinger joined the natural ice industry shortly after. He focused on the British market, which was still untapped. Apart from Mr. Hittinger, other competitors joined and increased the level of competition in the industry towards the 1830s and 1840s. This also included indirect competitors in the form of beverage companies such as Wenham Lake Ice Company, which became so popular with its Wenham ice. The entry of new competitors in the industry weakened the monopoly of the first-movers such as Tudor.

In conclusion, the two major events in the US natural ice industry between the 1910s and 1940s represent typical features of a market at the growth period. During this period, there is an enhanced strategy of improving the product position in the market through development of new innovations. Additionally, the large market potential during this phase attracts new competitors leading to a growth in competition. This is exactly what transpired in the natural ice industry in the US in the said period.

However, these two events are only part of the many other events that occurred in the industry at this growth phase. ReferencesGeroski, P. (2003). The evolution of new markets. OUP Oxford.Saaksvuori, A., & Immonen, A. (2005). Product life cycle management. 2nd Ed. Springer Science & Business Media.Stark, J. (2011). Product life cycle management: 21st century paradigm for product realisation. Springer Science & Business Media.Suarez, F., & Lanzolla, G. (2005). The half-truth of first-mover advantage.

Harvard Business Review. Retrieved from https://hbr.org/2005/04/the-half-truth-of-first-mover-advantageUtterback, J., M. (n.d.). Invasion of a stable business by radical innovation. Mastering the dynamics of innovation. Harvard Business School Press.