In this video Clayton Christensen talks about disruptive innovation and the effect it can have on well established businesses. Because the disruptive business comes in to low end competing with the less profitable portion of the established business’ market share the established business doesn’t pay much attention to them. The established business basically gives up that portion of the market in order to concentrate on more profitable areas. Eventually that disruptive business, through innovation, becomes more developed and competes with the established business eventually taking over the market.
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