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The Innovator’s Dilemma contemplates the difficulties of maintaining a firm’s position when faced with innovative technologies. It was first published in 1997 and remains an influential text for its descriptions of the reasons that some of the most successful firms in a given business often rapidly lose market share to new challengers.
Large companies that spend millions on research and development often fail to effectively confront challenges posed by innovation. Traditional business practices such as conducting strategic planning and paying close attention to customer needs are insufficient for negotiating disruptive innovations in the market. This is the innovator’s dilemma. Business managers must be prepared to confront this paradox. Rather than specific suggestions, they require a theoretical framework to manage the impact of disruptive innovation on established firms.
The history of the disk drive industry from the 1970s into the mid-1990s suggests that business innovations can come in two forms:
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