This is the next installment of a multi-part series to talk about what a Go-To does differently from the me-too pack. Part 1 talked about how a Go-To focuses. The next thing a Go-To does differently is build from a base of strength.
A Go-To Builds a Strong Beachhead Around a Central Theme Before It Broadens
Rather than a hodge podge of messages, products, services and activities, a Go-To builds its brand around a central theme/market, and every fiber of its being revolves around that theme until the company has enough of a dominant position to broaden from there into adjacent markets. Its activities aren’t all over the map. They are highly, highly focused.
- Oracle gained its footing as the Go-To for relational database technology before broadening into applications a full ten years after it was founded.
- Salesforce.com built its foundation as a salesforce automation application before broadening into other sales and marketing applications.
- Accenture is a $30 billion company today but started in the early 1950s as a tiny consulting division of the accounting firm, Arthur Andersen, to meet audit client demand for financial and manufacturing process automation. The bulk of this division’s business was focused on these two areas well into the 1970s.
- Facebook was initially only available to Harvard students; once strong there, it allowed students from just eight other universities to join. Not until it had a firm foothold in those markets, with others asking to join, did it open itself to most universities and corporations before finally allowing anyone 13 and older to sign up. Even with Facebook’s lightning-speed growth trajectory, this progression took two and a half years.
Look around. Just about any large company you can think of started with a beachhead.
Geoffrey Moore discusses the importance of a beachhead in market dominance strategy in his seminal strategic marketing book, Crossing the Chasm, which I highly recommend as a marketing primer to newbies and as a great refresher to everyone else. Using a D-Day analogy, he explains the importance of focusing your scant resources to secure a stronghold and then building from a base of strength. Much of what he talks about are principles many MBA students learned but have proceeded to ignore at their peril. It’s truly excellent and is a quick read well worth your time. Buy your own physical copy, mark it up and keep it near your desk for frequent reference.
One of the metaphors he references in explaining market dominance strategy is the use of kindling to start a fire.
The bunched-up paper represents your promotional budget, and the log, a major market opportunity. No matter how much paper you put under that log, if you don’t have any target market segments to act as kindling, sooner or later, the paper will be all used up, and the log still won’t be burning…this isn’t rocket science, but it does represent a kind of discipline.
— Geoffrey Moore
The key, then, is to figure out a beachhead – which market will you seek to own first before broadening?