Briefly discuss the strategic implications of the crossing-the-chasm framework.

Question

What will be an ideal response?

Answer 1

Based on empirical observations, Geoffrey Moore's core argument is that each stage of the industry life cycle is dominated by a different customer group. Different customer groups with distinctly different preferences enter the industry at each stage of the industry life cycle. Each customer group responds differently to a technological innovation. This is due to differences in the psychological, demographic, and social attributes observed in each unique customer segment. Moore's main contribution is that the significant differences between the customer groups that enter early during the introductory stage of the industry life cycle versus customers that enter later during the growth stage make a firm's smooth transition between the different parts of the industry life cycle difficult. That is, these distinct differences between customer groups lead to a big gulf or chasm into which companies and their innovations frequently fall. Only companies that recognize these differences and are able to apply the appropriate competencies at each stage of the industry life cycle will have a chance to transition successfully from stage to stage.