BU111 Lecture Notes - Lecture 16: Rebar, Disruptive Innovation
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Principles of good management that results in every company"s ultimate failure. If you become wildly successful because you do everything right, you are doomed. Every market has a trajectory of performance improvement that every customer can utilize. High end of the market: there are very demanding customers that can never be satisfied. Lower end of the market: customers who are satisfied by almost nothing. Each market has a different trajectory of improvement that innovative companies provide as they produce better products shoot beyond by almost always being faster than the customers can use. Some innovations that help companies move up in the market are incremental changes, while others are dramatic breakthroughs in technology. No matter how difficult it is to advance in technology, the companies in the lower end of the market are almost always at the top end of the market when the battle is over.
