Find Niche Market Biography
Moore uses a metaphorical bowling alley where one targets vertical industry market segments with broken mission critical business processes in order to penetrate this low risk product. If a popular app is found while these pragmatist are adopting as pins in a bowling alley a tornado of demand may develop where late pragmatists adopt en masses.
If enough of the technical complexity is designed out of the product the next adoption group, the conservatives on main street may adopt if they trust in a pragmatist reference base.
Finally there are the straggling skeptics who will only buy into a technology product if it is say, a microprocessor buried in the braking system of the pick up truck they are driving.
Managing for Shareholder value through Competitive Advantage GAP and Competitive Advantage Period CAP
GAP is a term used in investment analysis that interprets a company's current reported revenue and margin performance as a gauge of the competitive separation it enjoys in its target markets.
CAP refers to estimates of the length of time an investor believes a company can maintain a differentiated position that creates competitive separation.Moore defines the market share pecking order resulting from category outcomes in terms of the 'proprietariness' of the technology that an offering has embedded.
In an hierarchy resulting from the jungle scenario the pecking order is set firm in its place once established. The gorilla is the market-share leader whose position is sustained by proprietary technology that has high switching costs, leading to both high GAP and long CAP, the marks of exceptional shareholder value for the company. The chimp's market share position is subordinate to the gorilla in a market where both vendors have proprietary technology that is incompatible with the other's. To survive, chimps must typically create strongholds in niche markets where they are the local market leader or 'gorilla in the niche'. A monkey company has little to no market share in a category dominated by a gorilla, its strategy is to reproduce the gorilla's in-market offering as best it can and sell it at a substantial discount.
In the royal court scenario the roles of king, prince and serf are fluid throughout the life of the category in question. The king is the market share leader whose position is sustained primarily by execution. Compared to gorillas kings typically have equally high GAPs but, because they can be more readily swapped out, significantly shorter CAPs, resulting in lower shareholder value. The prince is a market-share challenger whose position is sustained primarily by execution as opposed to proprietary technology with high switching costs. Compared to chimps, princes have fare more volatile CAPs because they have the opportunity to displace kings as the market leader but also the vulnerability of being displaced by some another would be prince. The serf is a market share also-ran in a market with low switching costs, serfs enter and exit product categories opportunistically based on short lived offer power advantages. They are the ultimate commoditizing force. Compared to monkeys, serfs have lower barriers to entry as there is no proprietary technology to clone.
Moore uses a metaphorical bowling alley where one targets vertical industry market segments with broken mission critical business processes in order to penetrate this low risk product. If a popular app is found while these pragmatist are adopting as pins in a bowling alley a tornado of demand may develop where late pragmatists adopt en masses.
If enough of the technical complexity is designed out of the product the next adoption group, the conservatives on main street may adopt if they trust in a pragmatist reference base.
Finally there are the straggling skeptics who will only buy into a technology product if it is say, a microprocessor buried in the braking system of the pick up truck they are driving.
Managing for Shareholder value through Competitive Advantage GAP and Competitive Advantage Period CAP
GAP is a term used in investment analysis that interprets a company's current reported revenue and margin performance as a gauge of the competitive separation it enjoys in its target markets.
CAP refers to estimates of the length of time an investor believes a company can maintain a differentiated position that creates competitive separation.Moore defines the market share pecking order resulting from category outcomes in terms of the 'proprietariness' of the technology that an offering has embedded.
In an hierarchy resulting from the jungle scenario the pecking order is set firm in its place once established. The gorilla is the market-share leader whose position is sustained by proprietary technology that has high switching costs, leading to both high GAP and long CAP, the marks of exceptional shareholder value for the company. The chimp's market share position is subordinate to the gorilla in a market where both vendors have proprietary technology that is incompatible with the other's. To survive, chimps must typically create strongholds in niche markets where they are the local market leader or 'gorilla in the niche'. A monkey company has little to no market share in a category dominated by a gorilla, its strategy is to reproduce the gorilla's in-market offering as best it can and sell it at a substantial discount.
In the royal court scenario the roles of king, prince and serf are fluid throughout the life of the category in question. The king is the market share leader whose position is sustained primarily by execution. Compared to gorillas kings typically have equally high GAPs but, because they can be more readily swapped out, significantly shorter CAPs, resulting in lower shareholder value. The prince is a market-share challenger whose position is sustained primarily by execution as opposed to proprietary technology with high switching costs. Compared to chimps, princes have fare more volatile CAPs because they have the opportunity to displace kings as the market leader but also the vulnerability of being displaced by some another would be prince. The serf is a market share also-ran in a market with low switching costs, serfs enter and exit product categories opportunistically based on short lived offer power advantages. They are the ultimate commoditizing force. Compared to monkeys, serfs have lower barriers to entry as there is no proprietary technology to clone.
Find Niche Market
Find Niche Market
Find Niche Market
Find Niche Market
Find Niche Market
Find Niche Market
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Find Niche Market
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Find Niche Market
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Find Niche Market
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Find Niche Market
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