"The Innovator’s Dilemma" by Clayton M. Christensen explores why established companies often fail despite having good management practices and leading technologies. Christensen introduces the concept of 'disruptive innovation,' explaining how smaller companies with fewer resources can successfully challenge big businesses by targeting overlooked segments, then gradually moving upmarket. The book emphasizes that while major firms focus on improving products for high-end customers (sustaining innovations), they ignore the simpler needs of other segments. Disruptive innovations often start as cheaper, simpler options but gradually evolve, becoming appealing to a company's main customer base, ultimately displacing established products. Christensen argues that to avoid being overtaken, companies must recognize the value of new technologies and markets early on, even if they initially seem less profitable. Key takeaways include the importance of agility, willingness to embrace change, and the strategic implementation of innovations to secure long-term success and avoid obsolescence in rapidly shifting markets.
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