New products and services can enter your market from other directions, each distinct in terms of how, where, and when it affects your business. These are market dislocations — radical breakaways from the existing market that occur when a company introduces a business model or a product that sits apart from those of competitors.
Clearly, not all upstart threats are alike — and misdiagnosing your new competition can lead you to respond in a way that can bring further harm to your business. Incumbents often move early into new technologies, even if it means undermining or cannibalizing their existing businesses. Sometimes that’s the right thing to do. But other times it can backfire in devastating ways. Instead of acting rashly, incumbents should take a step back, determine what type of dislocation they are facing, and respond with the appropriate tools and strategies. Not doing so can lead to lost customers and slipping profits — or worse.
Author: Alexander Kandybin
Source: strategy+business
Subjects: Innovation, Strategy
- The Innovator’s Manifesto: A Problem of prediction
[Archive.org URL] - 2003 Handbook of Business Strategy [Archive.org URL]
- Building an Innovation Engine [Archive.org URL]
- Disruptive Innovation Doesn’t Always Hurt Market Leaders — Sometimes, It Helps Them [Archive.org URL]
- Forging Innovation From Disruption [Archive.org URL]
- Is the Theory of Disruption Dead Wrong? [Archive.org URL]
- It takes systems, not serendipity: A blueprint for building a disruptive-innovation engine [Archive.org URL]
- Managing the “Unmanageable”: Radical Innovation [Archive.org URL]
- Should You Reinvent Your Business Model? [Archive.org URL]
- Six Keys to Building New Markets by Unleashing Disruptive Innovation [Archive.org URL]
- The Industrialized Revolution [Archive.org URL]
- The Innovator’s DNA: Mastering the Five Skills of Disruptive Innovators [Archive.org URL]
- Where Disruptive Innovation Came From [Archive.org URL]
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