There are companies, many companies, that fail to stay at the top of their industries. Many of them fail when certain types of changes in the market and changes in technology appear that have unpredictable results. Here I'm not talking about the failure of just any company but the failure of good, or even great, companies; the kind of good companies that the business world admires and tries to emulate. These are the kind of companies that have excellent execution and have implemented successful business strategies that have brought out innovative and useful products that have been well received by customers.
How is it that well-managed companies, ones that are extremely competitive, listen to their core-customers and invest heavily in new technologies, fail? Why does a company that seems to do everything correctly, follows a sound business plan and is well managed begin a downward decline and fail in spite of following what the business world generally holds to be best practices? It can be summed up in one word that Iwata has been repeating over and over, "DISRUPTION". *
* - Loosely paraplagezed from "The Innovator's Dilemma" by Clayton M. Christensen. I blame Wii Fit.
Hi Roland!
