The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail (Management of Innovation and Change)

Author: Clayton M. Christensen
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by Choc13   2018-10-13
The Innovator’s Dilemma is a good read for more information on this topic. In fact one of the examples/case studies focuses on Sears and how the were nearly taken down by discount retailing.

The book can be found on Amazon here:

by karmelapple   2017-10-26
It would not be a horrible decision for Apple to make, because they embrace a solution to the Innovator's Dilemma.

The Innovator's Dilemma [1] is something that Steve Jobs seemed to have solved. How? Selling one product that cannibalizes sales of another from the same company was A-OK on his watch.

The iPod Mini was a perfectly fine device, yet Apple introduced the iPod Nano at the height of the Mini's popularity. The Nano had less storage [2], but it had solid state flash memory, and therefore was thinner yet.

How'd that work out for Apple? Just fine [3] - they kept about 80% marketshare for the entire life of dedicated digital music players in the market, and that market only went away when Apple brought out a phone so good that it made carrying a dedicated digital music player unnecessary.

Competing with themselves is a key piece in Apple's sustained success in a few markets. The iPhone 8 / X matchup shows they continue to not be afraid to do that with their phone, and I think that's a very healthy thing for their continued success... which also feeds into continued success of their ecosystem, including app developers (like myself!).