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Article

Title: Taking on China, Inc.: What business models make the most sense...

Author: Moore, Geoffrey Article Type: Product Analysis
Source: MSI, v22 n2 p20(4) Publication Date: Feb 2004
  ISSN: 1533-7758
  Illustrations: Charts
URL of Publication: http://www.msimag.com

Geoffrey Moore, managing director with consultancy TCG Advisor and a venture partner at Mohr Davidow Ventures, presents his views on value, partners, and patience. Moore says, for instance, that we are not in a post-technology era, but that companies are reader for a 'breather from disruption.' Moore, who wrote several books, including 'Crossing the Chasm,' says, 'Crossing' is less relevant today because it is about marketing disruptive innovations, while his book 'Inside the Tornado' is more about marketing subsequent to such events. The latter book's Main Street section is more pertinent to what is currently occurring, but where disruptive innovations are being introduced, the chasm model should be consistent. A discussion is provided of the position in the world manufacturing economy to which China aspires and of the three potentially valuable value- centered directions in which a company strategy should proceed (upstream, downstream, and up-market). Upstream concentrates on complex engineering requirements that feed manufacturing where time- to-market issues provide onshore advantages. Downstream emphasizes complex marketing requirements that follow from manufacturing, where distribution and customer service matters create onshore advantage. Up-market moves the focus from supplying a product to supplying the whole subsystem of which it is a part, so that China can become a supplier, rather than a competitor.

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