Because Quote by Clayton M. Christensen
“Smart companies fail because they do everything right. They cater to high-profit-margin customers and ignore the low end of the market, where disruptive innovations emerge from.”
About This Quote
Source Book: The Innovator's Dilemma, 1997
Successful firms focus on high‑margin customers and miss low‑margin segments where disruptive ideas arise.
In simple terms: Ignoring low‑margin markets risks missing disruption.
Key Takeaway
Watch low‑margin niches for emerging threats.
Themes
innovation
strategy
market dynamics
Mood
cautious
analytical
Type
strategic
insightful
When to use this quote
- product development
- startup strategy
- corporate planning
- risk assessment
Key Concepts
disruptive innovation
business models
Questions to Reflect On
- How do you identify low‑margin opportunities?
- What safeguards can protect against blind spots?
A Different Perspective
Disruptors can also arise from high‑margin segments.
