In the book Innovator’s Dilemma, Clayton Christensen talks about Disruptive
Technologies. He talks about various well established companies in
various industries failed to adapt themselves to the disruptive
technological changes and which led most of them to fail in longer run.
These kind of changes keep happening all the time around us, and once we
map it to disruptive technology, suddenly we see reason.
When I [Mayank Sharma] applied it’s principle to my previous company (SiRF), I suddenly could see why the company failed. SiRF had established market leadership in GPS chips being used my navigation devices and in other niche segments. Profit margin in these industries was close to 50% and the company thrived in this market. Market for GPS chips in mobile phone was quite small then, and the profit margin quite low (30%-40%) for SiRF to address this market. But the market for GPS chips did change drastically in favor of mobile phones, where the requirements were completely different (low profit margin, low power etc..) and SiRF could not hold on to its leadership position.
To read the full, original article click on this link: Innovator’s Dilemma – Steve Jobs has solved it
Author: Mayank Sharma
