RE: Cree, chasm crossing
I have a different perspective on "Refer to the Technology Adoption Life Cycle, which is on page 21 of the original fm. Despite their lead and market share, CREE is still in the stage where their users are Innovators and Early Adopters. There is no chance of Bowling Alley or Tornado activity until they cross the Chasm and begin to gain customers of the Early Majority persuasion. That space between the Early Adopters to the Early Majority is the dreaded Chasm, and as Geoff says in his book, Crossing the Chasm,"
Referring to "Inside the tornado" (I loaned my rfm to an employee), Page 22-24. Moore lists 5 criteria
1. Is the target customer well funded and accessible to our sales force?
2. Do they have a compelling reason to buy?
3. Can we today with the help of our partners deliver a whole product to fulfill that reason to buy?
4. Is there no entrenched competion that could prevent us from getting a fair shot at this business?
5. If we win this segment, can we leverage it to enter additional segments?
I think in Cree's case the answer to each of these questions is yes when talking about LED's.
Consider their design wins with Nokia and the dashboard lighting with Volkswagen and Audi. These are 2 similar, but different applications and the decision makers that were involved in allowing there companies to move forward on this are clearly the early majority pragmatists.
( from P16, Pragmatists do not love technology for its own sake. They believe in evolution not revolution. They are interested in making their companies systems work effectively and look to adopt innovations only after a proven track record.)
I agree with Mountain lady Cree has crossed the chasm with at least one use of SiC. Further I believe that because of the material properties of SiC, we will see multiple chasms and bowling alleys being addressed concurrently, albeit with staggered starts.
This company seems to be different from the others we study and dissect in that it is addressing a number of different markets.
Since they are only reporting YOY growth of ~70%, I think we can rightly conclude that they are not in the tornado, but they ae definitely knocking down different application pins in huge consumer market products.
I do agree with your point about Cree not being a confirmed Gorilla and therefore not qualified selection for a pure GGamer. Yet how many of us are playing pure Gorilla Games?
Sunny |
