Strategy Dynamics Briefing 20: The Bass Diffusion Model

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We have discussed how resources drive or hold back each others’ growth rates, and the idea that the level of a resource may affect its own development.

A particularly common framework arises when the saturation of a limited opportunity combines with word-of-mouth between already active customers and potential customers. This captures well how new products diffuse into a market, a process first set out by Professor Frank Bass1 hence the framework’s title.

Although initially focused on how durable products are adopted (products ...

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Tipping point for hybrid cars

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In The Coming Boom in Hybrid Cars ‘in strategy+business makes out that sales of hybrid vehicles are following exactly what would be expected from ‘S-curve theory’ [?] – slow initial growth being driven by early adopters until the innovation becomes mainstream. Standard approaches have little to say about the scale or nature of change in such cases.

 Strategy dynamics frameworks capture, quantitatively, the interactions between improved functionality, pricing, marketing, as wellas those amongst different groups of customers. Much of this integrates long-established ...

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