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Disruptive Innovation in the Era of Big Tech
HBR On Strategy
Analyzing Resistance and Acceptance of Disruptive Innovation Theory
The theory of disruptive innovation faced resistance initially with critics questioning its validity, particularly in large established companies like Gillette, Pepsi, and Coke. However, the theory offered a valuable explanation for managers, giving them a rationale for unexpected challenges even when following traditional business strategies. It highlighted how companies could fall victim to the 'innovator's dilemma,' acknowledging that successful disruptive innovations could catch even the most prominent companies off guard. The theory also shed light on puzzling business behaviors, such as the failure of Blockbuster to seize opportunities like Netflix did, attributing it to inherent organizational incentives that hindered responses to disruptive changes.
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