Bowling Pin Strategy
Leverage niche markets
The Bowling Pin Strategy is a market development approach that involves leveraging niche markets to achieve rapid growth and market dominance. It is based on the idea of creating a whole product that meets the needs of a specific niche market, and then using that success as a leverage point to expand into adjacent markets. The strategy involves identifying a beachhead segment, creating a whole product that meets the needs of that segment, and then using customer references and whole product extensions to leverage entry into related segments.
- Leverage niche markets to achieve rapid growth and market dominance
- Create a whole product that meets the needs of a specific niche market
- Use customer references and whole product extensions to leverage entry into adjacent markets
- Identify a Beachhead SegmentIdentify a niche market that has a compelling reason to buy and is not currently well served by any competitor.Pro tipLook for segments with a high potential for growth and a low level of competition.WarningBe careful not to choose a segment that is too small or too competitive.
- Create a Whole ProductCreate a whole product that meets the needs of the beachhead segment, including all the necessary components and services.Pro tipMake sure the whole product is complete and meets the needs of the target market.WarningBe careful not to overspend on the whole product, as this can limit profitability.
- Leverage Customer ReferencesUse customer references from the beachhead segment to leverage entry into adjacent markets.Pro tipMake sure to get testimonials and case studies from satisfied customers to use as references.WarningBe careful not to overuse customer references, as this can become annoying to potential customers.
- Extend the Whole ProductExtend the whole product to meet the needs of adjacent markets, using the leverage of the beachhead segment.Pro tipMake sure to keep the whole product up to date and competitive, to maintain market dominance.WarningBe careful not to extend the whole product too far, as this can dilute the focus and reduce profitability.
Apple's success with the Macintosh was due in part to its use of the Bowling Pin Strategy, leveraging the niche market of graphic artists to achieve rapid growth and market dominance.
Sun's success with Unix was due in part to its use of the Bowling Pin Strategy, leveraging the niche market of technical workstations to achieve rapid growth and market dominance.
The Bowling Pin Strategy was developed by Geoffrey A. Moore, based on his observations of successful high-tech companies that had achieved rapid growth and market dominance through leveraging niche markets.