Quotes About Market

Managers who don't bet the farm on their first idea, who leave room to try, fail, learn quickly, and try again, can succeed at developing the understanding of customers, markets, and technology needed to commercialize disruptive innovations.

Why do well-managed companies fail? He concludes that they often fail because the very management practices that have allowed them to become industry leaders also make it extremely difficult for them to develop the disruptive technologies that ultimately steal away their markets.

they reached as far upmarket as they could in each new product generation, until their drives packed the capacity to appeal to the value networks above them. It is this upward mobility that makes disruptive technologies so dangerous to established firms—and so attractive to entrants.

It is in disruptive innovations, where we know least about the market, that there are such strong first-mover advantages. This is the innovator's dilemma.

When the performance of two or more competing products has improved beyond what the market demands, customers can no longer base their choice upon which is the higher performing product.

You need to define an opportunity that is disruptive relative to all the established players in the targeted market, or you should not invest in the idea.

In sustaining circumstances—when the race entails making better products that can be sold for more money to attractive customers—we found that incumbents almost always prevail. In disruptive circumstances—when the challenge is to commercialize a simpler, more convenient product that sells for less money and appeals to a new or unattractive customer set—the entrants are likely to beat the incumbents.

The strategies and plans that managers formulate for confronting disruptive technological change, therefore, should be plans for learning and discovery rather than plans for execution. This is an important point to understand, because managers who believe they know a market's future will plan and invest very differently from those who recognize the uncertainties of a developing market.

That work led to my theory of disruptive innovation,1 which explains the phenomenon by which an innovation transforms an existing market or sector by introducing simplicity, convenience, accessibility, and affordability where complication and high cost have become the status quo—eventually completely redefining the industry.

Competitiveness is far more about doing what customers value than doing what you think you're good at.

Research has shown, in fact, that the vast majority of successful new business ventures abandoned their original business strategies when they began implementing their initial plans and learned what would and would not work in the market. 9

They planned to fail early and inexpensively in the search for the market for a disruptive technology. They found that their markets generally coalesced through an iterative process of trial, learning, and trial again.

There are times at which it is right not to listen to customers, right to invest in developing lower-performance products that promise lower margins, and right to aggressively pursue small, rather than substantial, markets.

Disruptive technologies bring to a market a very different value proposition than had been available previously. Generally, disruptive technologies underperform established products in mainstream markets. But they have other features that a few fringe (and generally new) customers value. Products based on disruptive technologies are typically cheaper, simpler, smaller, and, frequently, more convenient to use.

But differentiation loses its meaning when the features and functionality have exceeded what the market demands.

established firms attempt to push the technology into their established markets, while the successful entrants find a new market that values the technology.

it means that disruptive technologies that may underperform today, relative to what users in the market demand, may be fully performance-competitive in that same market tomorrow.

Once both technologies were good enough in the basic capabilities demanded, therefore, the basis of product choice in the market shifted to reliability.

Mi madre me enseñó que el mercado era una oscura y siniestra máquina que trituraba y devoraba cien destinos por cada individuo afortunado al que recompensaba

Blue ocean strategists do not seek to beat the competition. Instead they aim to make the competition irrelevant.

The natural strategic orientation of many companies is toward retaining existing customers and seeking further segmentation opportunities. This is especially true in the face of competitive pressure. Although this might be a good way to gain a focused competitive advantage and increase share of the existing market space, it is not likely to produce a blue ocean that expands the market and creates new demand.

What are the alternative industries to your industry? Why do customers trade across them? By focusing on the key factors that lead buyers to trade across alternative industries and eliminating or reducing everything else, you can create a blue ocean of new market space.

Every blue ocean will eventually be imitated and turn red

The key here is not to pursue pricing against the competition within an industry but rather to pursue pricing against substitutes and alternatives across industries and nonindustries.