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Innovators Dilemma Explained

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Why does market share often change in an S-curve pattern

Why does market share often change in an S-curve pattern


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  • 1. The Innovator’s Dilemma Explained
    Click Play to See Presentation
    10 Slides Total
    Product Performance
    Time
  • 2. Progress of
    sustaining
    technology
    Steady Improvement in Base TechnologyRaises Product Performance Over Time
    Product Performance
    Time
  • 3. High-end
    performance
    demand trend
    Customer’s Expectations Increase
    Product Performance
    Low-end
    performance
    demand trend
    Time
  • 4. Progress of
    sustaining
    technology
    High-end
    performance
    demand trend
    At Time T1 Product is Just Good Enough
    Product Performance
    Low-end
    performance
    demand trend
    Good, but….
    T1
    Time
  • 5. Progress of
    sustaining
    technology
    High-end
    performance
    demand trend
    Supplier Makes Improvements With
    Existing Technology
    Product Performance
    Much Better!
    Low-end
    performance
    demand trend
    Good, but….
    T1
    Time
    T2
  • 6. Progress of
    sustaining
    technology
    High-end
    performance
    demand trend
    At T3, Supplier Continues With What Works,
    But Product Performance Exceeds Needs
    Great!
    Product Performance
    Much Better!
    Low-end
    performance
    demand trend
    Good, but….
    T1
    Time
    T2
    T3
  • 7. Progress of
    sustaining
    technology
    High-end
    performance
    demand trend
    Disruptive Innovation Occurs at T2,
    No Perceived Threat - Does Not Meet Needs
    Progress of
    new technology
    Great!
    Product Performance
    Much Better!
    Disruptive
    innovation
    Low-end
    performance
    demand trend
    Good, but….
    T1
    Time
    T2
    T3
  • 8. Progress of
    sustaining
    technology
    High-end
    performance
    demand trend
    By T3 the Disruptive Supplier Meets Needs,
    Base Tech Supplier Stuck on Old Technology
    Progress of
    new technology
    Great!
    Product Performance
    Much Better!
    Disruptive
    innovation
    Low-end
    performance
    demand trend
    - Good, but….
    T1
    Time
    T2
    T3
  • 9. Progress of
    sustaining
    technology
    High-end
    performance
    demand trend
    At T4, Innovator Hits the Sweet-spot
    Legacy Supplier Now Too late to Change
    Progress of
    new technology
    Super
    Great!
    Product Performance
    Much Better!
    Sweet Spot
    Disruptive
    innovation
    Low-end
    performance
    demand trend
    Good, but….
    T1
    Time
    T2
    T3
    T4
  • 10. Progress of
    sustaining
    technology
    High-end
    performance
    demand trend
    This Leads to Rapid Market Share Gain by the Innovator at T4 and the S-Curve Pattern
    Progress of
    new technology
    Super
    Great!
    Product Performance
    Much Better!
    Sweet Spot
    Disruptive
    innovation
    Low-end
    performance
    demand trend
    Good, but….
    S-Curve Pattern
    Original supplier market share High Low
    Disruptive tech supplier share Low High
    T1
    Time
    T2
    T3
    T4