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  • Writer's pictureMeirav Peleg Landau

Crossing the Chasm: A Guide for Non-Tech Corporations to Conquer New Markets

MPL Innvoation

The "Crossing the Chasm" theory, introduced by Geoffrey A. Moore in his seminal book of the same name, has become a widely recognized framework for technology companies and startups navigating the challenges of transitioning from an early adopter market to the mainstream market. However, the principles outlined in this theory can also be highly relevant and applicable for established non-tech corporations seeking to introduce new products or services and capture new market segments.

At its core, the "Crossing the Chasm" theory proposes that there exists a significant gap, or chasm, between the early adopters of a new technology or innovation and the early majority, or mainstream market. This chasm represents a crucial transition point where companies must adapt their strategies, positioning, and offerings to appeal to a broader audience with different needs, expectations, and risk tolerance.

Crossing the Chasm

For non-tech corporations, the challenges of crossing the chasm can be even more pronounced, as they often lack the agility and risk-taking culture associated with startups or technology companies. However, by understanding and applying the principles of the "Crossing the Chasm" theory, these established companies can unlock new growth opportunities and successfully navigate the complexities of introducing disruptive innovations or new offerings to unfamiliar market segments.

Market Segmentation and Target Audience Identification -

The theory emphasizes the importance of carefully segmenting the target market and identifying the characteristics, needs, and preferences of both early adopters and the mainstream audience. For non-tech corporations, this process can provide valuable insights into the pain points, motivations, and decision-making criteria of potential customers in new market segments, enabling more effective positioning and messaging strategies.

Positioning and Value Proposition Development -

Moore stresses the need for effective positioning and messaging when targeting the early majority, as their requirements and concerns often differ from those of early adopters. Non-tech corporations can leverage this principle by crafting compelling value propositions that resonate with the specific needs and priorities of the target market segment, addressing their concerns, and clearly communicating the benefits of adopting the new offering.

Building a Whole Product -

The "Crossing the Chasm" theory advocates for developing a "whole product" that extends beyond the core technology or product itself, encompassing complementary services, support, and ecosystem components. Established non-tech companies can leverage their existing resources, infrastructure, and industry expertise to create comprehensive offerings that address the broader needs of the target market segment, providing a compelling reason for adoption.

Leveraging Existing Strengths and Partnerships -

While adapting to new market segments, non-tech corporations should capitalize on their existing strengths, such as brand reputation, customer relationships, distribution networks, or industry expertise. Additionally, strategic partnerships or ecosystem development can be invaluable in accessing complementary capabilities, technologies, or market knowledge necessary for successful market entry and adoption.

Cultural Transformation and Organizational Alignment -

Introducing disruptive innovations often requires a cultural shift within the organization, fostering a more agile, customer-centric, and risk-taking mindset. Non-tech corporations can benefit from aligning their teams, processes, and resources to support the successful introduction of new offerings to new market segments, embracing the principles of the "Crossing the Chasm" theory to drive organizational transformation.

By understanding and applying the principles of the "Crossing the Chasm" theory, established non-tech corporations can navigate the challenges of market expansion, identify and target new customer segments effectively, and unlock growth opportunities through the successful introduction of innovative products or services. Embracing this framework can help these companies overcome internal resistance, adapt to changing market dynamics, and position themselves as leaders in their respective industries, even in the face of disruptive innovations.


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