In our previous post, we talked about how Kodak fell to competition from digital photography and promised to explain why in our next. This post is about why Kodak failed. It’s because of what we call “the incumbent’s dilemma,” which this presentation explains.

Our ideas about how companies succumb to competition from entrants who bring a new technology or process to the fight depend a lot on Clay Christensen’s and Michael Overdorf’s research on innovation and competition. You can find their article “Meeting the Challenge of Disruptive Change” by clicking on the link.