1. “Competitive battles” Christensen Munir Mandviwalla Fox School of Business Temple University

3. Companies Consumers Signals of change Competitive battles

4. Non-consumers / Not consuming Change Simple Increase access Increase ability Reduce financial barrier Reduce skill barrier Easily Effectively Signals Growth rate Specific segments (college students!) Product or service delivery chain RELATIVE low price How Convenience Customization Lower price Leads to: New market disruptive innovation Undershot Change Incremental More radical Signals Consumer frustration Negative reviews Willingness to pay higher prices Prosperity of niche integrators Specialists struggle How – existing customers Performance - Reliability Performance - Functionality Integration - need it for radical Compatibility Interoperability Legacy Leads to: Sustaining up-market (radical or incremental innovation) Overshot Change Basis for competition Make the product “less good” Commoditize Signals Decreasing prices over time (refusal to pay for more) Features not used Complaints about ‘complicated’ How Value chain Convenience Customization Low prices Ease of use (flexible and convenience, customizability, price) Leads to Low-end disruptions (convenience/price) Specialists displace integrated players (need modularity) Standards based competition Signals of change

5. Source: Christensen, C., Anthony, S., and Roth, E. “Seeing What’s Next: Using the Theories of Innovation to Predict Industry Change.” Harvard Business School Press, 2006, p.2. Law of gravity (profit) Move up-market Serve more profitable customers who are willing to pay higher Low - costDifferentiationThe cycle continues IncumbentsNew firms

6. Resources (do they have or can they get) Processes (are they any good) Values (Can they seize the opportunity) How do you analyze the above?

7. 1.Entrants enter behind a shield of asymmetric motivation; early incumbent response leads to cramming 2.Entrants grow and improve; incumbents chose flight 3.Entrants utilize the sword of asymmetric skills The sword and the shield