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

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