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  • Essay / Analysis of the Innovator's Dilemma - 1790

    The Innovator's Dilemma is a book designed to examine and analyze why good companies with good management and known for their abilities to innovate and execute fail unable to stay at the top of their industry when faced with certain types of technological and market changes. The companies analyzed in the book are all well-run, listen carefully to the needs and wants of their customers, invest in new technologies, and still end up losing market dominance. The book also examines companies from different industries that move at different paces, some fast and some slow, and all of which are market leaders, to show that the theory presented can be applied and justified across multiple industries and not only evolving rapidly. those such as microcomputers. The first point addressed by The Innovator's Dilemma is that the decisions that led to the downfall of the industry's leading companies were made when those companies were widely considered to be shrewdly managed businesses. The explanation for this failure is attributed to the fact that these companies were as well run as a company could hope to be, but there is something about the way decisions within the company are made that lead to their failure. The Innovator's Dilemma states that because companies listened to their customers, invested aggressively in technologies that would provide them with more and better products of the type they wanted, and because they studied market trends very carefully and allocated capital to innovations that promised the best returns. , they lost their leadership position within their industry. The book states that there are times when it is better not to listen to customers, instead investing in developing less successful products that promise... middle of paper ......less competition. The third strategic option to address these dynamics is to use marketing initiatives to steepen the slopes of market trajectories so that customers demand the performance improvements delivered by technologists. (154). The ideas and theories presented in this book are relevant to this course because they can directly affect how a company develops its supply chain. If large companies want to continue developing disruptive technologies, then they will need to implement a supply chain that is separate from their current business model. The supply chain will need to be adapted to meet small market demands. This will allow these large organizations to avoid the costs associated with overproducing a product. Supply chains will also need to be designed to operate and be profitable in low-margin product markets..