The Big Idea
Christensen argues that market leaders can falter when confronted with disruptive innovation because sound management practices may bind them to existing high-margin customers within established value networks. While sustaining innovations improve existing products for current buyers, disruptive innovations often enter fringe markets with simpler, cheaper alternatives. As these technologies improve, entrants may reach mainstream customers before incumbents respond, revealing how organizational capabilities that support sustaining growth can become disabilities when firms face disruptive market shifts.
