Practice question · Multiple choice
A market leader polls its most profitable customers, who unanimously want better performance in the existing product, none want the cheap, inferior newcomer’s gadget. The leader invests accordingly and, eight years later, is obsolete. Christensen calls this…
Hints
- Was any single decision irrational?
- The customers answered honestly, about today.
Show the answer
C. The innovator's dilemma
Why
Every step was locally rational, that is the dilemma. Best customers can only report today’s needs on today’s metrics; disruption changes the metrics. The escape is structural: a separate unit free to serve the niche the core is right to ignore.
Practise Innovation and Entrepreneurship
The app has 5 more questions on this lesson, and keeps your place in the course. Business I is free to start.
More questions on Innovation and Entrepreneurship
- Sustaining or disruptive? Sort each pattern.
- Match each concept to its author or origin.
- A market leader listens carefully to its best customers and is destroyed by a cheaper, initially worse…
- Which practices belong to the lean-startup method?
- Digital photography destroyed chemical film, and Kodak had invented the digital sensor. Why do incumbents so…
- Order the lean-startup cycle for a new delivery service.
- A new technology doubles its performance every 2 years, starting at 10 while the old plateau sits at 80. Set…
- In ambidextrous organizations, the exploring unit is deliberately separated from the exploiting core because…