: They prioritize projects that satisfy their largest, most profitable customers, who rarely want unproven, lower-margin disruptive tech.
The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail
In , Harvard professor Clayton M. Christensen presents a startling paradox: great companies often fail not because they make mistakes, but because they do everything "right"—they listen to customers, invest in their best products, and chase high margins . This very focus creates a blind spot for disruptive innovations , which typically start as simpler, cheaper, and lower-performing products in niche markets before eventually overtaking the mainstream. Core Concepts of the Book Sustaining vs. Disruptive Technology : The Innovators Dilemma - The Revolutionary Book...
: Improvements that make existing products better for current customers (e.g., a faster processor).
: Innovation follows an "S" shape: progress is slow initially, then accelerates rapidly as the technology matures, before eventually leveling off. : They prioritize projects that satisfy their largest,
: New value propositions that initially underperform in the mainstream but appeal to a small, new, or "low-end" customer base (e.g., the first personal computers or hydraulic excavators).
: New disruptive markets are initially too small to satisfy the growth requirements of a large organization. This very focus creates a blind spot for
: As markets mature, the basis of competition shifts through four distinct phases: Functionality → Reliability → Convenience → Price . Why Great Firms Fail Companies become victims of their own success because of: