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Technology Stocks : Windows Phone

MSFT 506.99

-1.5%

Nov 5 3:59 PM EST

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To: zax who wrote (946)	5/19/2013 10:37:15 AM
From: Eric L	of 1099

Marketing Strategy Trivia: Beware the Chasm ... Some innovative and potentially disruptive technologies or products never make it out of that chasm. Those that do have the potential to experience rapid hypergrowth after securing a market niche or two in the bowling alley stage preceding mass adoption. Execution is key, and disciline and patience are requisite. Zax, << “Law of diffusion of innovation” explains why Windows Phone is about to take off >> Maybe, but it's early and WinPhone might or might not really "take off" and experience mass market adoption. The diffusion of innovations model began with a 1943 Iowa State study by Neal C. Gross and Bryce Ryan of the diffusion of hybrid seed corn among Iowa farmers. Everett Rogers generalized the use of it in his book, Diffusion of Innovations and as the model evolved it formed the basis for the Technology Adoption Life Cycle (TALC) model. Marketing strategist Geoffrey A. Moore popularized a modified version of the TALC in his 1st three published books: Crossing the Chasm (1991); Inside the Tornado (1995); The Gorilla Game (1997), and in the latter attempted to apply strategic marketing concepts to technology investing theory. The original modification to the model in Crossing the Chasm was the insertion of the chasm treacherous chasm gap between the second adoption stage (the early market), and the early majority stage. Inside the Tornado added the 'bowling alley' (original niche or niches) and the 'tornado' (hyper-growth) stages on the way to mass adoption. In the early nineties Nokia incorporated Moore's concepts into their own evolving marketing strategy and tactics and Jorma Ollila's 'new management paradigm' with great success. Nokia became what Moore termed a 'King' ( with 2x market share of thei next closest competitor) in the pantheon Moore introduced in The Gorilla Game and Microsoft (along with Intel and Cisco) became what Moore termed a 'Gorilla.' It should be noted that Geoffrey Moore and the Chasm Group consulted to Steve Jobs back in his NeXT days and later at Apple. Some of Moore's concepts are evident in the successful evolution of the iOS ecosystem anchored by iTunes which had its 'bowling alley' roots in iPod. - Eric -

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