Disrupted Incumbents

Market Disruption > Existing and Emerging Competitors

Established incumbent companies are vulnerable to market disruptions, and thus must learn to innovate continuously or face eventual decline

Established incumbent companies are vulnerable to market disruptions, and thus must learn to innovate continuously or face eventual decline

Illustrative Disruptions

  • Vulnerabilities – Successful, well-managed companies (including those that are responsive to customers and have excellent R&D) are vulnerable to technology-enabled disruptions because they tend to ignore small markets that are most susceptible to disruptive innovation
  • Innovate or Decline – Incumbents who fail to acknowledge external disruptions and use technology advances to innovate offerings eventually experience declines in market share, revenue and profitability
  • Reinvention – Successful incumbent companies reinvent themselves continuously, leveraging models like "innovating from the edge" and "lean innovation" to rapidly evolve and remain successful
PROOF POINTS
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