Tornado Marketing Framework
Ride the tornado to market dominance
The Tornado Marketing Framework is a strategy for high-tech companies to achieve market dominance during a period of rapid growth, known as a tornado. This framework involves attacking competitors ruthlessly, expanding distribution channels as fast as possible, and ignoring customers during the tornado phase. The goal is to become the market leader, or gorilla, and set the standard for the industry.
- Attack competitors ruthlessly during the tornado phase.
- Expand distribution channels as fast as possible to reach new customers.
- Ignore customers during the tornado phase and focus on competitors.
- Identify the TornadoRecognize the signs of a tornado, such as rapid growth and increasing demand, and prepare to take advantage of it.Pro tipMonitor industry trends and customer demand to anticipate the start of a tornado.WarningFailing to recognize a tornado can result in missing out on a significant opportunity for growth.
- Attack CompetitorsFocus on competing with other companies during the tornado phase, rather than serving customers.Pro tipUse competitive intelligence to identify weaknesses in competitors' strategies and exploit them.WarningOveremphasizing competition can lead to neglect of customer needs and damage to the company's reputation.
- Expand DistributionIncrease distribution channels and partnerships to reach new customers and expand the company's presence in the market.Pro tipPartner with companies that have complementary products or services to expand the company's offerings.WarningOverexpansion can lead to decreased quality and increased costs.
- Focus on Installed BaseAfter the tornado phase, focus on serving the company's installed base of customers to maintain market share and increase revenue.Pro tipDevelop strong relationships with customers to increase loyalty and retention.WarningFailing to focus on the installed base can result in decreased customer loyalty and revenue.
Oracle's aggressive marketing and distribution strategies during the minicomputer relational database tornado allowed it to become the market leader and set the standard for the industry.
Ingres's more cautious approach to marketing and distribution during the same tornado resulted in it being overtaken by Oracle and losing market share.
The Tornado Marketing Framework was developed by Geoffrey A. Moore, based on his observations of successful high-tech companies in Silicon Valley. He identified the key principles and strategies that these companies used to achieve market dominance during periods of rapid growth.