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The Innovators Dilemma in Summary

A snappy summary of Clayton Christensen's “Innovator’s Dilemma” disruption model from DBMS2. A must for students :-)

  • Market leaders have many advantages, including top technology.
  • Followers come up with good technology too.
  • The leaders stay ahead by making their products ever better and more complex.
  • The followers sell into new or non-mainstream markets, at prices the leaders can’t match. So they dominate new markets.
  • Old markets turn into low-margin commodity-fests.
  • Old leaders are screwed.


And it’s really hard for market leaders to avert this sad fate, because the short- and intermediate-term margin hit would be too great.

Submitted by ppower on Tue, 2007-03-20 17:11.
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