Crossing the Chasm or Being Crossed Out: The Case of Digital Audio Players

The aim of this article is to study the phenomenon of chasm that often exists in the diffusion of innovation and to devise a theoretical framework enabling to explain the ability of some firms to cross this chasm, while many others remain unsuccessful. The proposition developed in this article is that the choice of initial market segment has crucial importance as adoption in this segment can lead to a cascade of adoption in the other segments. To illustrate this proposition, three cases studies of an historical leader (Sony), a first mover (Archos) and a newcomer (Apple) in the market for digital audio players are presented.