The Innovator’s Dilemma (by Clayton Christensen)

The Innovator’s Dilemma, by Clayton Christensen, explains how established companies often struggle to adopt new, disruptive technologies because doing so can threaten their existing profits and customer base. While these innovations may eventually transform the industry, mature companies tend to focus on improving their current products to satisfy their most demanding customers. As a result, they can overlook or dismiss smaller, initially less profitable innovations that eventually improve enough to displace the market leaders. This dilemma highlights the challenge firms face: balancing necessary innovation with maintaining their existing business models.