Tornado vs. Bowling Alley Framework
Contrasting strategies
The Tornado vs. Bowling Alley framework highlights the differences in strategy between high-growth markets (tornadoes) and niche or established markets (bowling alleys). In a tornado, companies focus on infrastructure buyers, ignore return on investment, and prioritize timely deployment of reliable infrastructure. In contrast, bowling alley strategies emphasize return on investment, differentiation, and partnering with value-added distribution channels.
- Focus on infrastructure buyers in high-growth markets
- Ignore return on investment in favor of timely deployment
- Differentiate your whole product for a single application in niche markets
- Assess Market TypeDetermine whether your market is a tornado (high-growth) or a bowling alley (niche or established).Pro tipUse market research and analysis to inform your assessment.WarningMisjudging the market type can lead to ineffective strategies.
- Choose StrategySelect the appropriate strategy based on the market type. For tornadoes, focus on infrastructure buyers and timely deployment. For bowling alleys, emphasize return on investment and differentiation.Pro tipBe prepared to adapt your strategy as the market evolves.WarningFailing to adapt can result in lost market share and revenue.
Apple's transition from a high-growth market (tornado) to a more established market (bowling alley) required a shift in strategy, from focusing on infrastructure buyers to emphasizing return on investment and differentiation.
The framework is based on the author's observations of high-tech companies in Silicon Valley, where companies must navigate rapid market changes and transitions.