disruptive innovation

Why Do Incumbent Businesses Often Struggle with Disruptive Innovation?

Incumbent businesses frequently struggle with disruptive innovation for several reasons:
- Resource Allocation: Companies allocate resources to projects that promise the highest returns, often ignoring smaller, less profitable markets where disruptive innovations thrive.
- Customer Focus: Incumbents listen to their existing customers who demand better versions of current products, not entirely new solutions.
- Organizational Inertia: Established processes and structures can make it difficult for incumbents to pivot and adopt disruptive innovations quickly.

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