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Inside the Tornado: Strategies for Developing, Leveraging, and Surviving Hypergrowth Markets

AUTHOR: Geoffrey A. Moore
ISBN: 0060745819

SHORT DESCRIPTION: In Inside the Tornado, Geoffrey A. Moore continues his classic three-part series delving into the high-stakes world of hypergrowth markets. Here, Moore examines these markets and their implications for business strategies and, in turn, provides...

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         Editorial Review

Inside the Tornado: Strategies for Developing, Leveraging, and Surviving Hypergrowth Markets
- Book Review,
by Geoffrey A. Moore

Amazon.com
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.

Robert Epstein, vice president, Sybase, Inc.
Fantastic! The most insightful business book for high-tech businesses available without a prescription!

Inside the Tornado extends Moore's work with the Technology Adoption Life Cycle model to incorporate three distinct mainstream market stages - a pre-hypergrowth era of niche markets, the mass-market phenomenon of hypergrowth itself, and a post-hypergrowth era of mass customization. Moore illustrates the dynamics of each stage with examples from cutting-edge companies such as Hewlett-Packard, Microsoft, Intel, Sybase, PeopleSoft and Lotus. He then goes on to analyze each stage's impact on strategic partnerships, competitive advantage, positioning, and organizational leadership. Moore says, "The biggest challenge for management is that with each market phase transition, a new business strategy is called for - one that is not only different from their current strategy, but actually contradicts some of its core principles." Beyond High-Tech Inside the Tornado reaches out to companies beyond high-tech who are in technology-enabled or leveraged businesses, where the same market dynamics apply: publishing and broadcasting, banking and finance, healthcare, as well as entertainment, retail, where market forces are driving rapid innovation and new leaders are appearing overnight. The critical success factor in each of these competitions, according to Moore, is to achieve "gorilla status" inside the tornado in order to be the market leader during the hypergrowth phase, which results in permanent advantages throughout the remainder of the life cycle. Timing is critical to this tornado strategy. Moore explains how to pool resources and gain supporters during the pre-tornado phase and then how to unleash them once the tornado hits. He also helps companies understand the post-tornado transition to a maturing market when companies must refocus on winning additional business from their installed base instead of seeking revenue growth from new customers.

About the Author: Formerly a partner with Regis McKenna Inc., Geoffrey A. Moore is now president of his own firm, Geoffrey Moore Consulting, and founder of The Chasm Group. His firm teaches and facilitates the use of the group's models for developing marketing strategies. The company has conducted over two hundred engagements with clients including Aldus, AT&T, Bay Networks, Digital Equipment Corporation, Hewlett-Packard, IBM, NeXT, Oracle, PeopleSoft, Sun, Sybase, and Unisys, as well as numerous start-ups in search of their first tornado. Moore is also the author of Crossing the Chasm: Marketing and Selling Technology Products to Mainstream Customers, which highlights the key challenges facing venture capitalists in today's business world. Moore holds degrees in literature from Stanford University and the University of Washington. He is a frequent speaker at industry conferences and also lectures at business schools, where Crossing the Chasm is often a required textbook. He resides with his wife Marie in Palo Alto, California.

Doug Spreng, senior vice president, Client Access Business Unit, 3Com Corporation
"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."

Steve Jobs, CEO, NeXT Computer, Inc.
"The chasm is where many high-tech fortunes have been lost...the Tornado is where many have been made."

John Chambers, CEO, Cisco Systems
"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."


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         Book Review

Inside the Tornado: Strategies for Developing, Leveraging, and Surviving Hypergrowth Markets
- Book Reviews,
by Geoffrey A. Moore

Inside the Tornado: Strategies for Developing, Leveraging, and Surviving Hypergrowth Markets

FROM THE PUBLISHER

In Inside the Tornado, Geoffrey A. Moore continues his classic three-part series delving into the high-stakes world of hypergrowth markets. Here, Moore examines these markets and their implications for business strategies and, in turn, provides effective guidelines for winning market share and building margin share in mainstream markets.

Once a product reaches the mainstream market, it faces three often vexing questions: What is the best way to develop a stronger market for the product's growth? What is the most effective way to capitalize on and sustain growth? And when this market inevitably subsides, how can businesses survive the change?

Moore deftly answers these questions and provides businesses with the knowledge and tools they need in this fast-paced lucrative market.

About the Author:

Geoffrey Moore is a Managing Director with The Chasm Group, a consulting practice based in California that provides market development and business strategy services to many leading high-technology companies. He is also a Venture Partner with Mohr Davidow Ventures, a California-based venture capital firm specializing in specific technology markets, including e-commerce, internet, enterprise software, networking and semiconductors. As a Venture Partner at Mohr Davidow, he provides market strategy advice to their high-tech portfolio companies. Geoffrey is a frequent speaker and lecturer at industry conferences and his books are required reading at Stanford, Harvard, MIT and other leading business schools.

Geoffrey's current practice focuses on the concepts of his recent book Living on the Fault Line, targeted to CEO's and senior executivesof Fortune 500 companies facing the impact of the Internet. Geoffrey's first book, Crossing the Chasm, initially published in 1991, adds compelling new extensions to the classical model of the Technology Adoption Life Cycle. He introduces his readers to a gap or "chasm" that innovative companies and their products must cross in order to reach the lucrative mainstream market. A revised edition was released in July 1999 to update industries and case-study companies.

The sequel, Inside the Tornado, published in 1995, provides readers with insight into how to capitalize on the potential for hypergrowth beyond the chasm. This second book sorts out how the market forces behind the Technology Adoption Life Cycle demand the need for radical shifts in market strategy.

The Gorilla Game, Geoffrey's third book, was originally released in March of 1998 with a revised version, including a new chapter on internet investing, released August of this year. This book was co-authored with Chasm Group managing partner and high-tech marketing strategist Tom Kippola, and stock investment guru and BancAmerica Robertson Stephens analyst Paul Johnson. The Gorilla Game combines the methodology Moore introduced in Crossing the Chasm and Inside the Tornado, with Johnson's stockmarket valuation models and Wall Street expertise, and Kippola's high-tech investment experience.

Geoffrey's most recent book, Living on the Fault Line, focuses on a single theme: How should the management of a public company that rose to prominence prior to the age of the Internet manage for shareholder value now that the Internet is upon us? Living on the Fault Line guides executives and managers who are coping with disruptive technology, destabilizing their core market positions, providing them with new models, metrics, and organizational practices to meet the challenges of the new economy.

Prior to founding The Chasm Group in 1992, Geoffrey was a principal and partner at Regis McKenna, Inc., a leading high-tech marketing strategy and marketing communications company. For the decade prior, he was a sales and marketing executive at three different software companies.

Geoffrey holds a bachelor's degree from Stanford University and a Ph.D. from the University of Washington, both in literature, and served as an English professor at Olivet College.


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