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VNU Net: SCO Forum: Disruptive technology [Linux?] leads to downfall of the mighty [Microsoft?]

Aug 20, 1999, 18:41 (4 Talkback[s])
(Other stories by Cath Everett)

(No direct mention of Microsoft or Linux, but the parallels are hard to miss. - LT ed.)

"The fall of market leading companies is not linked to bad management as is widely thought, but to disruptive technology that comes in at the low end and pulls the rug out from under their feet.

According to Clayton Christiansen, a Harvard professor and author of 'The Innovator's Dilemma', each market becomes involved in 'a trajectory of improvement' with their offerings, which panders to the needs of very demanding users at the high end rather than those with simpler needs at the low end."

"...'managers that are taught to make products and services appeal to higher tier customers because they can sell them at higher margins. But this causes most companies to overshoot what customers at the low end can use,' he continued."

" 'This always happens - a vacuum is created at the low end, which sucks in cheaper and easier to use technology, and success stories are those companies that are good at introducing products at the right time into the mainstream. Taking lower margins and offering products at lower prices kills other companies.' "

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