In this article Clayton M. Christensen and Michael Overdorf talk about disruptive innovation and techniques industry leaders can utilize. The main priority of the industry leader is sustainable innovation, constantly improving current products to keep their best customers happy and turn a profit. When an emerging company develops a disruptive innovation the initial product isn’t attractive to the industry leaders because the profit margins are so low. Eventually the new product surpasses the leading product forcing the former industry leaders out of business. Companies can combat disruptive innovations by creating new organizational structures within corporate boundaries, spin out an independent organization, or acquiring a different organization. This article goes into detail explaining each tactic allowing a company to survive disruptive innovation.
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by in Harvard Business Review on March 01, 2000
