small-markets-growth-limitation
The idea that small emerging markets cannot meet the growth demands of large companies, making it difficult for them to justify early investment.
1 chapter across 1 book
The Innovator’s Dilemma (1997)Clayton M. Christensen
Chapter 5 explains that mainstream firms can successfully confront disruptive technologies by creating autonomous organizations dedicated to developing these innovations, free from the constraints of the parent company's existing customer base and cost structures. It highlights three principles: the necessity of small, independent units to address emerging markets; the challenge large companies face in relying on small markets for growth; and the difficulty of applying traditional market analysis to nascent markets that do not yet exist. These insights reveal why established firms often struggle with disruptive innovation and how they can better align resources to succeed.