Sequencing Apple's DNA

6Entering New Markets

6.1. The chasm

The way to enter new markets reveals the style of leadership to come for the products at stake.

First mover or second mover? Advantages versus disadvantages. The one who moves ahead first on new markets takes all the burden. The price to pay for maximum freedom and, later, dominance. Followers need to differentiate themselves, or alternatively accept to be perceived as “me-too” players. How do we mitigate a dilemma?

6.1.1. Business school

Keep your objectives. Manage by objectives (external to people).

Traditional thinking commands a simple line of action. First, you cannot refuse a tempting opportunity, because you have weighed up the attainable volumes. Second, entering new markets is so risky that this move should, therefore, only be performed gradually, taking advantage of similarities with existing products/markets. Or by acquiring external companies, and thus capturing the corresponding market share.

So, reassure your markets by saying what is next. What is going to be next? What could be next and is not yet.

Minimizing surprise effect to comforting markets, that is minimizing risks. After all, do markets not abhor two things above all: vacuum and risk?

6.1.2. Apple

“We’re always thinking about new markets we could enter, but it’s only by saying no that you can concentrate on the things that are really important.”

Steve Jobs,