Maelstrom has discussed the absorption of the existing market somewhat, but from the perspective of the existing market being absorbed AFTER the new market takes hold. I think his main shortcoming here is that he is looking at what people are supposed to be doing according to Blue Ocean Strategy and Innovator's Dilemma, without considering what people will actually do in an applied situation.
BOS I know does not make much mention of what happens when a product appeals to both the original market and the new market sufficiently that the overlap results in new and old customers alike wanting the product. Nor does it account for household dynamics and expanded userbases which use the same product unit as an existing customer but are still new customers in spite of that. He is flying blind, as it were, in that part if he's relying exclusively on BOS and ID, without thinking about the base-level practicality factor. His analysis is thus flawed in one key respect, but pretty thorough in most others.
Sky Render - Sanity is for the weak.
