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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.