The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail

The Innovator's Dilemma

Establishing your dominance in the market is not enough anymore. Poor management practices and unawareness usually leads to demise of incumbents. Acknowledging the changing trend and adapting to it has never been so crucial for these market giants – that is, developing your products with respect to the changing customer taste. Such techniques can help you to maintain your dominance in the long run.

  • Disruptive innovations overtake the emerging markets, causing downfall of sustaining innovations.
  • Avoiding ideas that customers don’t prefer seems logical. However, such disruptive innovations result in the fall of these firms.
  • Staying flexible and investing in research and development is vital for companies offering a varied range of products.
  • Disruptive innovations tend to be simpler than sustained innovations, thus making it austere for customers to understand.
  • Significance of analyzing market movements, relationship between customers and products are important aspects explored in this book.
  • Managing every innovation needs financial support – those ideas that are financially supported, tend to succeed more.
  • Entrepreneurs, managers, and CEOs who ostracize the indicators of this book are at risk of losing their edge over the market.

Passages from this book

  • Disruptive technologies typically enable new markets to emerge.
  • Disruptive technology should be framed as a marketing challenge, not a technological one.
  • To succeed consistently, good managers need to be skilled not just in choosing, training, and motivating the right people for the right job, but in choosing, building, and preparing the right organization for the job as well.
  • Three classes of factors affect what an organization can and cannot do: its resources, its processes, and its values.
  • Watching how customers actually use a product provides much more reliable information than can be gleaned from a verbal interview or a focus group.


“This is an important read, even if you’re at the very early stages of growing a startup.” — Drew Houston, CEO, Dropbox

“His book, one of the most significant business books of the past 50 years, became a mammoth bestseller, and its title entered the language.” — Fortune magazine

Additional Information

Author: Clayton M. Christensen | Language: English | Print: 288 pages