The Innovators Dilemma by Clayton Christensen


Clayton Christensen

  Strategy, Innovation, Leadership

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Innovation advantage for startups

Startups have a great opportunity to overtake industry giants when it comes to disruption. The reason is that it begins in low-margin niche markets as the target customer is often a totally different one than before. Large businesses are slow in offering these because some of the distinguishing factors of a business’s culture and capacity to perform are rigid for them:

1. Resources- Anything you can purchase, sell, hire or fire.
2. Processes- Models of action and communication, both formal and informal.
3. Values- The principles by which managers and employees make all organizational decisions.

Market leaders are packed with resources but have very stiff processes and a fixed set of values, which rarely matches the new target market of a disruptive innovation. These factors are difficult to change, especially short-term.

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