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Monday, February 06, 2012
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 | The Early Market
Customers are visionaries under the influence of technology enthusiasts. Each new deal is greeted with enthusiasm. Product is still immature. Whole product has to be built from scratch for each customer, including a significant amount of “special work” unique to that customer’s requirements. |
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| Crossing the Chasm
Early market commitments now absorb all discretionary resources such that you cannot offer any more “specials” to visionaries. Pragmatists, however, do not see the references nor the evidence of a whole product that would make you a safe buy. Sales cycles are extended, and most that do close are for pilot projects. |
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| The Bowling Alley
Product is endorsed by pragmatist customers within the confines of one or more niche markets. Sales cycles within these confines are predictable with good margins. Outside these confines, there are only opportunistic sales, often at significant discount. |
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| Inside the Tornado
The mainstream marketplace has taken off. Virtually any vendor who can supply this category of product can sell it. A fierce market share war has developed, and price discounting is vicious. A market leader has emerged, establishing the de facto standards, and this company gets much better margins than the competition. |
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| On Main Street
The hyper-growth era is over. Market growth slows down as the market saturates. To expand further some competitors are now modifying their “standard offerings” to appeal to niche markets. Other competitors compete on price alone. The market leader still gets a margin premium but is under pressure to reduce price. |
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| Total Assimilation
The product is either so pervasive that it is no longer being adopted for the first time, or is being replaced by a newer technology. |
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