2.1 The Attacker’s Advantage
Most studies have two factors on which explain the attacker’s advantage. 1.The Characteristics of the technological change that link to the capabilities of an organisation. Implication of emerging of new technologies in the industry can cause incumbent not prepare and do not have the capabilities of the technology to compete with. The core technologies upon are generally built in the components used in a product. Henderson and Clark propose a four folds of classification in which will be discuss later. In the initial stage of a radical innovation, product is not stable and main stream customers are not ready for the new technology, but once a dominant design has been established, firms capture a certain market share and strengthen their market positions. New competencies that required new technological paradigms explain successful companies may fail at such technological transitions which technology is very different.
2.The managerial processes and organisational changes accordingly in respond to the challenges. An organisation tends to move to incremental and modular innovations once the new technology has been established. Organisation shift to focus on improvement on the existing product and this shift could result in losing their market position especially in maturing market which company must be innovate and fast enough to be relatively competitive advantage.
3.Value Network was introduced that explain that firm must identify and responds to customers’ needs, procures and reacts to competitors (Christensen & Rosenbloom, 1993). Christensen defines value network as:
"The collection of upstream suppliers, downstream channels to market, and ancillary providers that support a common business model within an industry. When would-be disruptors enter into existing value networks, they must adapt their business models to conform to the value network and therefore fail that disruption...