Overshooting the Market

Companies improve existing technologies  until they exceed the needs of their customers.  


Overshooting the market

This is what Clayton Christensen calls "overshooting the market" in his book The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail.

When an existing technology more than meets the customers' needs, there is an opportunity for a simpler, cheaper undercutting technology to gain market share.

When a technology overshoots the market, incumbents can try two things: 

bullet Drive additional customer demand 
bullet Incorporate disruptive innovations into future strategy.


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