Audio available in app
Disruptive innovations initially serve lowend markets from "summary" of The Innovator's Dilemma by Clayton M. Christensen
Disruptive innovations often tend to emerge in markets that are considered low-end, or even non-existent. These innovations typically do not initially attract the attention of established companies, as they do not offer the same level of performance or features as existing products. However, disruptive innovations have the potential to improve over time and eventually meet the needs of mainstream customers. Low-end markets are often overlooked by established companies, as they tend to focus on serving the needs of their most demanding customers. These companies typically invest heavily in improving the performance and features of their products to meet the high standards of their core customers. As a result, they may not see the value in serving low-end markets with products that offer lower performance or features. Disruptive innovations, on the other hand, are designed to meet the needs of customers who are currently underserved by existing products. These innovations may offer a simpler, more affordable solution that addresses the basic needs of a different set of customers. While these products may not initially appeal to mainstream customers, they have the potential to disrupt the market by attracting a new customer base. Over time, disruptive innovations have the potential to improve and eventually surpass the performance of existing products. As a result, they may eventually capture the attention of mainstream customers and challenge the dominance of established companies. By initially targeting low-end markets, disruptive innovations have the opportunity to develop and grow in ways that may not have been possible if they had targeted mainstream customers from the start.- Disruptive innovations often serve low-end markets initially as a strategic approach to entering the market and gaining a foothold. By focusing on meeting the needs of underserved customers, these innovations have the potential to grow and disrupt the market over time. Established companies should be mindful of these disruptive threats and be willing to adapt to changing market dynamics in order to remain competitive.
