The innovator’s dilemma occurs because, when they first appear, innovations might not be good enough to serve the customers of the established companies in an industry, but they may be good enough to provide a new startup with enough customers in some niche area to build a product. Over time, the startup gains experience. Eventually, the startup has learned enough to create a strong product that takes away its larger rival’s customers. By that point, the larger company is too far behind, and the startup eventually dominates.
