What is a hunting zone?
A hunting zone is a market area on which a company focuses its innovation activities. It is a cluster of emerging customer problems.
Are hunting zones about ideas? – No, a hunting zone is not an idea. A hunting zone is a market area in which a company believes there are enough customer problems that it can solve.
What is the example of a hunting zone?
The technology firm NVIDIA selected specific end-markets for its ‘visual computing platform’ which is announced to investors. These included scientific discovery, data centers, and autonomous driving. The insurance company UNIQA aims to grow a new healthcare business and selected Mental Health, Primary Healthcare, and Elderly care as its hunting zones.
Is a hunting zone the same as SAM or Selected Addressable Market?
No, SAM is a concept that applies in developed markets where analytics can determine precise size. A Hunting Zone is a cluster of emerging customer problems.
How do you select a Hunting Zone?
Companies select hunting zones by taking account of its existing capabilities, emerging customer problems, societal and technological mega trends, and market attractiveness.
A Hunting Zone is attractive if:
- There are multiple customer problems to solve
- There is a willingness to pay to solve the problem (by the user or someone else)
- It exploits a megatrend in society or technology
- Good revenue potential in next 3-5 years
- You have or can acquire assets to scale a business – customers, capabilities, capacity
- It is an emerging market, with no dominant ecosystem player
What is the benefit of selecting a Hunting Zone?
A hunting zone defines boundaries for innovation that help to focus effort on areas that are likely to fulfill a company’s strategic ambition and therefore attract funding from senior management.