Innovator's Dilemma

The Innovator's Dilemma is a concept introduced by Clayton Christensen in his book of the same name. It describes the challenges that established companies face when they are confronted with disruptive innovations. These innovations often start at the lower end of the market, targeting niche segments or underserved customers, and gradually improve over time, eventually displacing established products and companies.

The dilemma arises because established companies tend to focus on their most profitable customers and products, which can lead them to ignore or dismiss disruptive innovations. As a result, they may miss opportunities to adapt and innovate, ultimately leading to their decline or failure in the face of new competition.