Why did Kodak—once a photography giant—miss the digital camera wave? Why didn’t Blockbuster become Netflix? It’s not that they didn’t see change coming. It’s that they were trapped in what Clayton Christensen called The Innovator’s Dilemma—a paradox where doing everything “right” by today’s standards can lead to failure tomorrow.
Christensen’s big insight was that successful companies focus so much on improving their existing products for loyal customers, they often overlook newer, riskier innovations. These new ideas usually start small and seem less profitable or even worse in quality. Think of how early digital cameras couldn’t match film quality or how Netflix’s mail-order DVDs seemed silly next to Blockbuster’s shelves. But over time, disruptive innovations improve, gain traction, and suddenly they’re not optional—they’re the future.
The dilemma is that large companies are too good at what they do. They listen to their biggest customers, protect their profit margins, and double down on what works. But this makes them blind to new markets. By the time the new tech or model is good enough to threaten them, the disruptors are already too far ahead. That’s how Netflix beats Blockbuster, Tesla stuns GM, and Apple turns the phone into a pocket-sized computer.
Kodak actually invented the first digital camera in 1975 but shelved it to protect its film sales. Blockbuster had the chance to buy Netflix and passed. These aren’t just business case studies—they’re cautionary tales. The Innovator’s Dilemma isn’t about tech. It’s about being too comfortable to take the leap.
RELATED POSTS
View all
