Category dynamics recognizes that market categories are both influential and malleable. This presents the opportunity for category strategy. Strategy is not limited to choosing positions in an external market, or changing the firm to fit the market. It should also include shaping the market to align with the firm. Category strategy is especially important for entrepreneurs who need to carve out a space for a new idea, product, or technology. Then, a firm’s position within (evolving) market categories affects how it is evaluated.