Summary of article “Disruptive Technologies: Catching the Wave” By Joseph L. Bower and Clayton M. Christensen
This article by Joseph L. Bower and Clayton M. Christensen wants to explain why most of leading companies around the world can’t maintain their position at the top of their industries in spite of growing in technologies and markets. They also offer suggestions for how the business can avoid such negative impact. They had a conclusion that most of the reason that the companies fail to remain/stay as leaders is because of the close relationships with their customers. For a short time, It was good, but for long term it can slow its progress when face the innovative changes.
Large companies usually stick close to one customer in order to fulfill their needs and stay in the competitive markets. Most of the managers who are looked upon to take risks based on their ability to stay competitive following their customer suggestions because it is the safest bet and lowest risk. However, this article will fully tell us about the consequences in choosing and using this method as their benchmark.
One example to show how risky for staying close to customer is the hard disk drive industry which happened between 1976 and 1992. The company only developed only the technologies that the customers needed. As the first result, it was quite good, however, after a few years, the company was toppled by other new-coming companies that had out of their boundaries and didn’t follow the needs of customers. As a result, not one of the independent disk drives companies was survive today.
From this kind of event, everyone can learn that they need to fully aware of disruptive technologies which do not meet customers’ needs in the present but very useful in the future. However, this pattern is still being used by some managers because they have making profit oriented. Why? The power of current customer needs is very useful for making profit for present, and managers usually...
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