0810

Problem

Firms such as Microsoft, Apple, Sony, and Intel have experienced a burst of demand for some of their products. During the “tornado” for a high-tech product, the guiding principle of operations for a market leader is “Just ship.” Explain and discuss the changes in marketing strategy the firm must follow after the tornado.

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Step 1/1

The tornado strategy stresses on product leadership and operational excellence in manufacturing and distribution. Usually in a tornado strategy there would be one winner who stays as leader until a new innovation comes and creates a new tornado.

After the tornado it’s the main street, which is usually calm and quiet. This stage is a period of aftermarket development. Competitors increase production and supply becomes more than demand. There may be price fluctuations and heavy advertisement cost has to be borne for product marketing. The main goal in main street strategy is to develop value based strategies, which target the end users. This strategy gives more emphasis to operational excellence in production and distribution.

Many companies do not survive the main street as they find it difficult to adjust after the tornado. When the company alters its strategy the company can remain in the competition till the next tornado. The companies have to come with new offers and new promotional policies to compete with the competitors.