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The D-Day Analogy

In: Business and Management

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Chapter 3: The D-Day Analogy

THE DANGERS OF THE CHASM
- Let’s say that a company has had its wave of sales during the innovator and early adopter stages. Customers are now few and far between and cash flow is slowing dramatically but the practical people are ignoring the new company because it lacks the references they require
- Managers won’t be able to find cash in existing customers because they are visionaries who have bought in on the basis that you will make improvements – so you are obligated to make those improvements but there is no cash coming in to the business
- You are running out of time because if you stick with the early market, you will be selling to those who want customization (requiring more work and no cash) or a new idea will come on to the market and take away those visionaries who are sustaining your business
- Investors have seen good growth in the early stages and expect you to keep to your plan of increasing sales, despite the fact that you are tiptoeing on the edge of the chasm
- The only way to avoid falling into the chasm is to get into the mainstream market soon.
- Entering the mainstream market is an act of aggression – the existing competition will resent you and it will be very difficult to build a relationship with realists who are loyal to their existing suppliers

THE D-DAY ANAOLGY
= The long-term goal is to enter and take control of the mainstream market (Eisenhower’s Europe) that is currently dominated by existing competition (the Axis)
= Assemble an invasion force including other products and services (the Allies)
= The short-term goal is to transfer from the early market base (England) to the strategic target market (Normandy), separated by the chasm (the English Channel).
= Cross the chasm as fast as you can with an invasion force focused on the point of attack (D-Day)

NEXT SLIDE
= Once you force the

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