# Market Definition

> Define market boundaries using substitution principle. Use for market sizing, competitive analysis, and strategic positioning.

- **Type:** Skill
- **Install:** `agentstack add skill-linuszz-business-strategy-planning-skills-market-definition`
- **Verified:** Yes — security-reviewed for prompt injection and unsafe behavior
- **Seller:** [linuszz](https://agentstack.voostack.com/s/linuszz)
- **Installs:** 0
- **Category:** [Agent Skills](https://agentstack.voostack.com/c/agent-skills)
- **Latest version:** 0.1.0
- **License:** MIT
- **Upstream author:** [linuszz](https://github.com/linuszz)
- **Source:** https://github.com/linuszz/business-strategy-planning-skills/tree/master/bp-strategy-design/skills/market-definition

## Install

```sh
agentstack add skill-linuszz-business-strategy-planning-skills-market-definition
```

Requires the [AgentStack CLI](https://agentstack.voostack.com/docs/cli). Works with Claude Code, Cursor, and any MCP-compatible agent.

## About

# Market Definition

## Metadata
- **Name**: market-definition
- **Description**: Market boundary definition framework
- **Triggers**: market definition, market boundaries, substitution, TAM SAM SOM

## Instructions
Define what constitutes a market using the substitution principle for analysis purposes.

## Framework

### The Substitution Principle

A market is defined by customer choice between substitute options.

```
Customer's Choice:
Product A  VS  Product B  VS  Do nothing

IF: Customer can switch between Product A and Product B
AND: Switching is not costly or disruptive
THEN: They are in the SAME market

IF: Customer would NOT switch to Product B
OR: Switching would be costly or disruptive
THEN: They are in DIFFERENT markets
```

### Market Definition Process

1. **Identify purpose** - Why define this market?
2. **List products** - What are we analyzing?
3. **Identify substitutes** - What alternatives exist?
4. **Apply substitution test** - Would customers switch?
5. **Define boundaries** - Geography, time, customer type
6. **Validate with data** - Check assumptions
7. **Document clearly** - Clear definition statement

## Output Format

```
## Market Definition: [Industry/Product]

### Purpose

**Why Define This Market:** [Analysis reason]
**Application:** [What will this definition be used for]

---

### Product List

| Product | Current Players | Substitutes | Same Market? |
|---------|----------------|-------------|----------------|
| [Product A] | [List] | [List] | ✅ Yes |
| [Product B] | [List] | [List] | ✅ Yes |
| [Product C] | [List] | [List] | ❌ No |
| [Do Nothing] | [Option] | - | ❌ No |

---

### Substitution Analysis

| Substitution Criterion | Assessment | Finding |
|---------------------|----------------|-----------|
| **Price Sensitivity** | [High/Med/Low] | [Analysis] |
| **Switching Costs** | [High/Med/Low] | [Analysis] |
| **Functional Equivalence** | [Yes/No] | [Analysis] |
| **Customer Preference** | [Analysis] |

**Conclusion:** 
- [Analysis of which products are in same market]
- [Definition of market boundaries]

---

### Market Definition

**Scope Statement:**
"[Clear statement of what constitutes the market]"

**Includes:**
- [List of products included]
- [List of products excluded]
- [Geographic boundaries]
- [Customer segments]
- [Time period considered]

**Excludes:**
- [Products not in this market]
- [Adjacent markets]
- [Different time periods]

---

### Validation Tests

| Test | Result | Confidence |
|------|--------|--------|-----------|
| Substitution test | ✅ Confirmed | High |
| Pricing check | ✅ Verified | High |
| Share analysis | ⚠️ Needs validation | Medium |

---

### Strategic Implications

1. **[Implication 1]** - [Analysis]
2. **[Implication 2]** - [Analysis]

### Boundary Map

```
┌─────────────────────────────────────┐
│                                   │
│         MARKET X (Product A)     │
│                                   │
│         Includes:                  │
│         Product A                     │
│         Product B                     │
│         Product C                     │
│         Do Nothing                   │
│                                   │
└─────────────────────────────────────┘
          ┌───────────────────────────────┐
          │                           │
          │     ADJACENT MARKET Y        │
          │   Product D                 │
          │   Product E                 │
          │   Product F                 │
          └───────────────────────────────┘
```

## Tips

- Be conservative - when in doubt, assume different markets
- Consider customer switching costs - both monetary and non-monetary
- Test with real customers - don't assume theoretical behavior
- Document assumptions clearly - boundaries matter for market sizing
- Update regularly - products and markets evolve
- Use quantitative thresholds - what defines "significant" switch?
- Consider indirect substitutes - new alternatives can emerge
```

## References

- Porter, Michael. *Competitive Strategy*. 1980. Chapter 2.
- Various industry analysis and market research sources

## Source & license

This open-source skill is cataloged on AgentStack and links to its original source — we do not rehost the code.

- **Author:** [linuszz](https://github.com/linuszz)
- **Source:** [linuszz/business-strategy-planning-skills](https://github.com/linuszz/business-strategy-planning-skills)
- **License:** MIT

Install and usage instructions live in the source repository linked above.

## Pricing

- **Free** — Free

## Security capabilities

Automated source analysis of v0.1.0 — what this tool can access:

- **Network access:** no
- **Filesystem access:** no
- **Shell / process execution:** no
- **Environment & secrets:** no
- **Dynamic code execution:** no

*"Yes" means the capability is present in the source — more access means more to trust, not that it is unsafe.*


## Versions

- **0.1.0** — security scan: passed — Imported from the upstream source.

## Links

- Listing page: https://agentstack.voostack.com/l/skill-linuszz-business-strategy-planning-skills-market-definition
- Seller: https://agentstack.voostack.com/s/linuszz
- Browse the marketplace: https://agentstack.voostack.com/browse

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