merchant first. No adjustments to prior purchases.
Instead, they should continue to strengthen relationships with core customers by investing in sustaining innovations. Put simply, they find a way to turn nonconsumers into consumers. This led to the distinction we discussed earlier between low-end and new-market footholds. The question now is whether there is a novel technology or business model that allows new entrants to move upmarket without emulating the incumbents high coststhat is, to follow a disruptive path. The theory of disruption predicts that when an entrant tackles incumbent competitors head-on, offering better products or services, the incumbents will accelerate their innovations to defend their business. Ubers financial and strategic achievements do not qualify the company as genuinely disruptivealthough the company is almost always described that way. Disruption is a process. Many leaders of small, entrepreneurial companies praise it as their guiding star; so do many executives at large, well-established organizations, including Intel, Southern New Hampshire University, and.
School librarians, bowling-league operators, and other small customers, priced out of the market, made do with carbon paper or mimeograph machines. And as is typical when incumbents face threats from sustaining innovations, many of the taxi companies are motivated to respond. Disruptive innovations originate in low-end or new-market footholds. The data supports the theorys prediction that entrants pursuing a sustaining strategy for a stand-alone business will face steep odds: In Christensens seminal study of the disk drive industry, only 6 of sustaining entrants managed to succeed.
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