Post by account_disabled on Jan 14, 2024 5:24:28 GMT
What to read next The trouble with innovation competitions What are we still getting wrong in performance management? Amy Leshkal Five key trends in AI and data science for the year Thomas Davenport and Randy Bean How developers are reducing AI’s impact on the climate Image courtesy of Clayton Christensen’s Disruptive Innovation theory first attracted public attention years ago. Christensen presciently explained that fast-moving disruptors entering the market with cheap, low-quality goods can undermine companies that cling to common beliefs about competitive advantage.
Over the past decade, however, the image of disruptors has changed dramatically. The key difference is that the products and services they are now entering the market are just as good as those offered by traditional companies. theory. In fact, they have expanded their reach and vitality and made it harder Email Lists Database than ever for traditional companies to compete. Classic Disruption Theory Before we look at how things evolved, let’s briefly review why Christensen’s theory proved to be so influential and actually disruptive to existing notions of competitive advantage.
Traditional strategy is based on the concept of generic strategy, in which a company can compete at the high end of the market through differentiation, compete at the low end of the market by pursuing cost leadership, or focus on providing excellent service to a specific niche market . Christensen shows new entrants a way to happily ignore these basic strategic dynamics. He shows how a new, dangerous class of competitors can wreak havoc by entering the low end of the market, where margins are slim and customers are unwilling to pay for something they don't need. New entrants offer products or services that are cheaper and more convenient, but fail to deliver the same level of performance on key criteria that most customers expect from incumbents that have been working.
Over the past decade, however, the image of disruptors has changed dramatically. The key difference is that the products and services they are now entering the market are just as good as those offered by traditional companies. theory. In fact, they have expanded their reach and vitality and made it harder Email Lists Database than ever for traditional companies to compete. Classic Disruption Theory Before we look at how things evolved, let’s briefly review why Christensen’s theory proved to be so influential and actually disruptive to existing notions of competitive advantage.
Traditional strategy is based on the concept of generic strategy, in which a company can compete at the high end of the market through differentiation, compete at the low end of the market by pursuing cost leadership, or focus on providing excellent service to a specific niche market . Christensen shows new entrants a way to happily ignore these basic strategic dynamics. He shows how a new, dangerous class of competitors can wreak havoc by entering the low end of the market, where margins are slim and customers are unwilling to pay for something they don't need. New entrants offer products or services that are cheaper and more convenient, but fail to deliver the same level of performance on key criteria that most customers expect from incumbents that have been working.