Serve the Tornado
Proactively serve the tornado
The Serve the Tornado framework emphasizes the importance of proactively serving the tornado market forces. This involves creating a clone market, institutionalizing and commoditizing the market leader's architecture, and driving prices and margins lower. By doing so, companies can create massive wealth for themselves and others in the industry.
- Proactively serve the tornado market forces
- Create a clone market to institutionalize and commoditize the market leader's architecture
- Drive prices and margins lower to create massive wealth for the company and others in the industry
- Create a Clone MarketCreate a clone market to institutionalize and commoditize the market leader's architecture. This involves creating a market where other companies can create compatible products, driving prices and margins lower.Pro tipFocus on creating a market where other companies can create compatible products, rather than trying to control the market.WarningBe careful not to create a market that is too fragmented, as this can lead to confusion and decreased demand.
- Drive Prices and Margins LowerDrive prices and margins lower to create massive wealth for the company and others in the industry. This involves reducing costs and increasing efficiency to create a competitive advantage.Pro tipFocus on reducing costs and increasing efficiency to create a competitive advantage.WarningBe careful not to drive prices and margins too low, as this can lead to decreased profitability.
IBM's PC strategy is an example of serving the tornado. By creating a clone market and driving prices and margins lower, IBM was able to create massive wealth for itself and others in the industry.
The concept of serving the tornado was first introduced by Geoffrey A. Moore in his book 'Inside the Tornado'. Moore argues that companies should not try to control the tornado, but rather serve it by creating a clone market and driving prices and margins lower.