The Innovator's Solution: Creating and Sustaining Successful Growth (Creating and Sustainability Successful Growth)

by Clayton

Dimension Sustaining Innovations Low-End Disruptions New-Market Disruptions Targeted performance of the product or service Performance improvement in attributes most valued by the industry’s most demanding customers. These improvements may be incremental or breakthrough in character. Performance that is good enough along the traditional metrics of perform- ance at the low end of the mainstream market. Lower performance in“traditional” attributes, but improved performance in new attributes— typically simplicity and convenience. Targeted customers or market application The most attractive (i.e., profitable) customers in the mainstream markets who are willing to pay for improved performance. Overserved customers in the low end of the mainstream market. Targets non- consumption: customers who historically lacked the money or skill to buy and use the product. Impact on the required business model (processes and cost structure) Improves or maintains profit margins by exploiting the existing processes and cost structure and making better use of current competitive advantages. Utilizes a new operating or financial operating or financial different combination of lower gross profit margins and higher asset utilization that can earn attractive returns at the discount prices required to win business at the low end of the market.