The Innovator's Dilemma - Case Study Example

Why we need to offer a 8” drive. Generally, the products that an organization sells could be categorised based on the combination of their market share and market growth relative to the largest competitor. Relative market share and market growth are proxies for competitive advantage and industry attractiveness respectively which are two important determinants of company profitability. At the present moment, the 1.8” drive may require immense resources and effort to market but could have high probability of generating immense revenues in the future.

In the wake of the impact of disruptive technologies on incumbent firms, it would be prudent for the organization to balance its product portfolio by having both high-growth and low-growth products. Here, one could look at the 2.5” drive as the low-growth product and the 1.8” as the high-growth product. Also, as Christensen (Para 38) says most incumbents fail because of delay in making the strategic commitment to enter the emerging market. Choosing to offer the 1.8” drive now the organization lessens the likelihood of failing if the 1.

8” turns out to be a disruptive technology.Why it is a mistake to develop the 1.8” driveChristensen (Para 27) says that established firms are the leading innovators in literally every other sustaining innovations in the drive industrys history. Merely investing in a new technology for fear that it could be a disruptive technology would be a waste of scarce resources. Those resources would be better spent in critically analysing the market. In today’s rapidly changing business environment, the company should not merely focus on their current customers but on their non-consumers as well.

The company should find out if there are ways that it could meet the needs of its non-consumers and then invest in developing that market. If developing the 1.8” would enable it to capture this new market, and if the market’s projections imply that it is sustainable then it should invest in the 1.8”. Otherwise, the company should not venture into making the 1.8 drive. Works CitedChristensen, Clayton M. “The Innovator’s Dilemma.” Bloomberg Businessweek. Book Excerpt. Web. 10 Sept. 2011.