Disruptive Technologies

Many incumbents fall prey or victim to not developing new technologies which could result in new firms knocking out the incumbent market leaders. The incumbents create blockades to embracing new technology because it tends to violate core capabilities, it shifts the current paradigm, and lacks incentives. Incumbent market leaders need to review customer preferences to indentify possible disruptive situations.

This whole disruptive technologies reminds me of our strategy course and our discussion of “Blue Oceans.” By adopting new technologies, incumbents move themselves from the “Red Ocean” into a Blue Ocean position. For further information, see the encapsulated version at http://www.blueoceanstrategy.com/