Shifting the Boundaries with Entrepreneurial Activities: New Market Creation

they discover (Mengüç and Auh, 2008) in order to drive the market according to their interest. By ignoring the present value offerings of the competitors and the market, these firms create a leap in the customer value function (Kumar, Sheer, and Kotler, 2000). As a result, they make competition in the present market irrelevant by creating a new market (Kim and Mauborgne, 2005). Boundary decisions are a major part of new market formation strategy and boundaries of the firm co-evolve with the boundaries of the new market. There are two basic boundary decision contexts which are directly related to market creation, that are, identity decisions and power structure of the firm connected to the market and competitors. With the help of identity and power related boundary decisions, firms act beyond their legal boundaries and incidentally reform market s boundaries and re-define the market.