Eric Siu explains Clayton Christensen's Innovator's Dilemma: why successful companies fail when they focus on improving existing products instead of disrupting themselves. Blockbuster ignored Netflix, Nokia missed smartphones, and Google may be facing the same trap now.
Are you familiar with the Innovator's Dilemma? Uh, no. Clayton Christensen, so he wrote this book called The Innovator's Dilemma. It basically describes the paradox where successful companies fail by doing everything right because they have to focus on sustaining what they have right now. So you think about Blockbuster dismissed Netflix, right? Or Nokia missed the smartphone shift. Microsoft missed mobile, right? Then they kind of got into a little trouble there, right? The point is Google's in that Innovator's Dilemma right now. The good thing is they've got a lot of great products, YouTube and all that. So I think they might try to ride the wave where once they see it really start to switch, maybe that's when they turn it on.
