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Established companies fear cannibalizing existing products from "summary" of The Innovator's Dilemma by Clayton M. Christensen
Established companies often find themselves in a tricky situation when it comes to innovation. On one hand, they know that they need to stay competitive by constantly improving their products and services. However, on the other hand, they are hesitant to invest in new technologies or ideas that may cannibalize their existing products. This fear of cannibalization stems from the fact that these companies have built their success on their current offerings, and any disruption to this could jeopardize their position in the market. The dilemma arises when companies are faced with the decision of whether to invest in new, disruptive technologies that have the potential to revolutionize their industry. While these technologies may offer significant benefits in terms of efficiency, cost savings, or performance, they also pose a threat to the company's existing products. This is because customers may choose the new technology over the old, leading to a decline in sales of the company's traditional offerings. In many cases, established companies choose to ignore or downplay the potential of disruptive technologies in order to protect their existing products. This is a natural response, as they have a vested interest in maintaining the status quo and may not see the value in disrupting their own business. However, this aversion to change can be detrimental in the long run, as it leaves companies vulnerable to new competitors who are willing to take risks and embrace innovation.- Even if it means cannibalizing existing products. By being proactive and embracing change, companies can stay ahead of the curve and maintain their competitive edge in the market. This requires a shift in mindset from fear of cannibalization to a focus on long-term growth and sustainability. Ultimately, companies that are able to navigate this dilemma successfully are the ones that will thrive in an ever-evolving business landscape.
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