PDF Ebook Inside the Tornado: Strategies for Developing, Leveraging, and Surviving Hypergrowth Markets (Collins Business Essentials), by Geoffrey A.
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In this, the second of Geoff Moore's classic three-part marketing series, Moore provides highly useful guidelines for moving products beyond early adopters and into the lucrative mainstream market. Updated for the HarperBusiness Essentials series with a new author's note.
Once a product "crosses the chasm" it is faced with the "tornado," a make or break time period where mainstream customers determine whether the product takes off or falls flat. In Inside the Tornado, Moore details various marketing strategies that will teach marketers how reach these customers and how to take advantage of living inside the tornado in order to reap the benefits of mainstream adoption.
- Sales Rank: #49470 in Books
- Published on: 2005-12-27
- Released on: 2004-12-14
- Original language: English
- Number of items: 1
- Dimensions: 8.00" h x .61" w x 5.31" l, .48 pounds
- Binding: Paperback
- 272 pages
Amazon.com Review
This is Moore's second book expounding his high-tech marketing theories, focusing on what to do when you've followed his advice in Crossing the Chasm so well that customers are beating down your door and crawling in the windows, putting your business into a new lifecycle stage: the mass market.
From Library Journal
Moore (Crossing the Chasm, HarperBusiness, 1991) claims that marketing technology-based products is different from marketing standard consumer products. He explores marketing stages through a discussion of the "Technology Adoption Life Cycle," which follows a product from birth to death and suggests a course of action for each phase. He also charts power distribution within a company and the marketplace as these high-tech companies engage in traditional business strategies (i.e., strategic partnerships, competitive advantage, positioning, and organizational leadership). Moore provides examples from high-tech firms such as Hewlett-Packard, Apple, and Pyramid. Although other recent books address technology marketing (see TechnoBrands, AMACOM, 1991), none addresses life cycle issues. Written for those with a prior knowledge of marketing theory, this book is recommended for business libraries.
Kathy Shimpock-Vieweg, O'Connor-Cavanagh Lib., Phoenix, Ariz.
Copyright 1995 Reed Business Information, Inc.
Review
"We at Cisco have been living inside the tornado for the better part of a decade now, and we make heavy use in our strategy sessions of Geoff Moore's models for how high-tech marketplace dynamics evolve, and how business strategies must change to match them. This is an excellent book for anyone competing in the new Internet economy." -- John Chambers, CEO, Cisco Systems
"When I first read Inside the Tornado several years ago, I was struck by how accurately it described our networking business. Now the Internet has created a whole series of tornadoes which will lead to a new world of pervasive connectivity and untold opportunity for 3Com. Thank you, Geoffrey Moore, for your powerful treatment of these world-changing business models." -- Doug Spreng, senior vice president, Client Access Business Unit, 3Com Corporation
"Few businesses operate today without the hope of making it 'Inside the Tornado.' Geoffrey and The Chasm Group have captured the essence of business marketing strategy in a framework that is more useable and meaningful." -- Carol Bartz, chairman and CEO, Autodesk
Explains Market Dynamics Behind High-Tech Hypergrowth
Inside the Tornado the long-awaited sequel to Crossing the Chasm by Silicon Valley marketing strategist Geoffrey Moore, follows its predecessor as required reading material for today's leading business schools and industry luminaries. The book focuses on the market dynamics of hypergrowth, with a behind-the-headlines look at how companies such as Microsoft and Netscape capture dominant market shares and leap into prominence.
"Geoff Moore's books are a must-read for all participants in high-tech. Crossing the Chasm and Iinside the Tornado are required reading for my students both at the Stanford Engineering School and the Harvard Business School," said Thomas J. Kosnik, consulting associate professor, Stanford Engineering School, and visiting associate professor, Harvard Business School.
In a sneak preview of the July 31, 1995 issue of Soft-Letter, Editor Jeff Tarter stated that Inside the Tornado is clearly destined to be one of the technology world's most influential strategy guides.
Inside the Tornado is a must for everyone who wants to realize the phenomenal success of many of America's high-tech companies, said Yogen Dalal, general partner at Mayfield Fund, a Silicon Valley investment firm.
Moore's first book, Crossing the Chasm, introduced readers to an updated view of the Technology Adoption Life Cycle, including a "chasm" phase which separates the early adopters from the mainstream market of pragmatic customers, and the strategies for making this market transition. The book continues to double in sales every six months since its release in 1991, reaching nearly 60,000 copies sold through July, 1995, and continues to sell 3,000 copies per week. -- From the Publisher
Most helpful customer reviews
50 of 57 people found the following review helpful.
Two Invaluable Guides to E-Commerce
By Robert Morris
Crossing the Chasm (1991) and Inside the Tornado (1995) are most valuable when read in combination. Chasm "is unabashedly about and for marketing within high tech enterprises." It was written for the entire high tech community "to open up the marketing decision making during this [crossing] period so that everyone on the management team can participate in the marketing process." In Chasm, Moore isolates and then corrects what he describes as a "fundamental flaw in the prevailing high-tech marketing model": the notion that rapid mainstream growth could follow continuously on the heels of early market success. In his subsequent book, Inside the Tornado, Moore's use of the "tornado" metaphor correctly suggests that turbulence of unprecedented magnitude has occurred within the global marketplace which the WWW and the Internet have created. Moreover, such turbulence is certain to intensify. Which companies will survive? Why? I have only one (minor) quarrel with the way these two books have been promoted. True, they provide great insights into marketing within the high technology industry. However, in my opinion, all e-commerce (and especially B2B) will be centrally involved in that industry. Moreover, the marketing strategies suggested are relevant to virtually (no pun intended) any organization -- regardless of size or nature -- which seeks to create or increase demand for what it sells...whatever that may be. I consider both books "must reading."�
15 of 16 people found the following review helpful.
Its raining bananas
By Amazon Customer
This is fantastic. Some simple mataphors: the bowling alley (niche marketing where you pick off segments like pins), tornado (when market demand increases exponentially) and main-street (when the tornado dies down and you need to focus on adding value). Some jungle characters: the gorilla - the company with the greatest market share, the chimps - the apes who wanted to be gorillas but failed and the monkeys - the low cost clone providers.
A wonderful explanation of how it is so easy to get it dead wrong as markets change, dead wrong in strategy, dead wrong in the selection of critical success factors and dead wrong in who you select as your CEO.
Easy to understand and vivid in its descriptions. If you are into high-tech and you want all the bananas get into this now.
17 of 19 people found the following review helpful.
Prosper in High Technology Markets after Crossing the Chasm
By Donald Mitchell
Inside the Tornado is the 1995 sequel to the 1991 book, Crossing the Chasm. Inside the Tornado repeats the arguments of Crossing the Chasm, and adds three new stages of how to manage a business during the lifecycle of a technology. While Crossing the Chasm was primarily about marketing with some strategy emphasis, this book reverses the emphasis. I recommend the 1999 paperback version because it contains a new introduction that serves better as a helpful afterword to the book, as Mr. Moore suggests, in updating it for the Internet.
In Crossing the Chasm, Mr. Moore successfully argues that new technologies first attract customers who love technology, and will try anything. If you succeed with that group, you will next attract visionary customers who will want to use the technology to steal a march on their competitors. After that comes the chasm, getting into broad acceptance. Many technologies never make it. The method to cross is described in Inside the Tornade as the bowling alley. You pick a few key segments that may reflect the needs of other segments. By providing custom solutions for these segments, you create a ricochet effect into striking good solutions for other niches. The analogy is to the way that after the bowling ball first hits the one and three pins (for right handers) and then continues on to take out the five pin, those three pins hit the pins behind them, which in turn go backward to take out the pins in the final row, until you have a strike.
The tornado is the period of mass market acceptance. This is when there is a lot of demand as everyone who decides about infrastructure adopts the new standard simultaneously. You have to standardize, get your costs down, and ship at low prices. Your strategy is just the opposite of the bowling alley period. The metaphor here is to the tornado in the Wizard of Oz that sweeps Dorothy, Toto, and her house from Kansas to Oz.
Then comes Main Street, when the market demand is now filled and you are looking at "aftermarket development, when the base infrastructure has been deployed and the goal now is to flesh out its potential." You once again focus on segments, and create custom solutions.
The final period is End of Life, when "wholly new paradigms come to market and supplant the leaders who themselves had only just arrived." In essence, you start a new technology cycle. The best companies (like Intel) will do this to themselves.
The book also describes the importance of becoming the gorilla who will have about 50 percent market share and earn 75-80 percent of industry profits as a result of dominating the tornado period. Gorillas are made during the tornado. Oracle is described as an example.
During the bowling alley your company needs to be very good at product leadership and customer intimacy, during the tornado you need to shift to product leadership combined with operational excellence, and in Main Street the focus is on operational excellence and customer intimacy. This thinking will remind you of the book, The Discipline of Market Leaders, and the work of Dr. Adizes. Most companies will not be agile enough to make these transitions. Examples abound in the book. Apple's example will hit home with you, I'm sure.
As to the Internet, things are different. In the original book, the Internet is only mentioned three times. In the introduction here, Mr. Moore says that the "Internet market tornado, however, is so powerful that it has sucked all four models into its vortex." Companies are succeeding simultaneously in different parts of the Internet space at the same time with each of the strategies outlined here.
In the future, I think technologies will evolve more like the Internet has. During these evolutions, I think that business model discontinuities will be more important than technology discontinuities. While you can only put technology discontinuities in during parts of the cycle (never during the tornado), business model shifts can occur at any stage. Also, it is easier to shift business models than to shift technologies. Business model shifts affect your own operations more than customers, while technologies have a large impact on customers. My current work is focused on how the two need to interact with one another, which is not addressed here.
After you have read this excellent book, I suggest that you consider the organizational planning issues required to create such a multi-faceted effectiveness. For example, you may find it easier to have two organizations. One will focus on creating custom solutions, while another focuses on mass market solutions. In that way, you can hedge your bets with predicting the timing of each phase.
May you always focus your attention on the most important activities required by the markets you serve!
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