The Innovator’s Dilemma begins as an exciting new market opportunity presents itself.
Blue enters the market by providing a solution. It solves some customer problems by leveraging its new Circle technology.
Blue doubles down on Circle technology and continues to grow. Eventually, it captures the majority of the market.
But markets aren’t stagnant. They constantly change. Go back and look how the corners of the outlined area have been evolving. This represents new customers with unique needs who Circle technology can’t serve.
Then Green enters the market. It’s a startup pioneering Triangle technology. It serves the needs of the corner of the market. Blue doesn’t change because Circle is still a better solution for the majority. Besides, it might lose focus if it tries to specialize in Triangle.
The rest, as they say, is history.
The Innovator’s Dilemma was created by Clayton Christensen.
