Disruption Business Technique
I'm not using "disruption" in the dictionary terms. An earthquake is a disruption. A phone call is a disruption. This is disruption of the business kind. It comes from a man named Clayton Christensen who wrote the book tries to find why well managed firms die. The answer: disruption. This is the abridged version: A company makes new values which is more in tune with what more consumers want. It grows a new market, then attacks the old market. Here is the process
The Old Market overshoots the old one (here, Sony and Microsoft focused on more immersive time sinks, better graphics, and more expensive hardware. Nintendo noticed people were leasing the market which he called "gamer drift")
A newcomer or outcast makes a new product hoping to capture new users. The mainstream market (in this case, the hardcore) laugh at it can call it a "non-X"
The consumer's product grows by leaps and bounds. The incumbent is startled by this, but brushes it off.
The disruptor (Nintendo, in this case) moves upstream. They take more and more markets, The incumbent (Sony and Microsoft) lets Nintendo have them since they are unfavorable markets (these are gamers who did not want to buy a 360 or PS3, but were still in the market previously).
The incumbent counter attacks. This could be a motion controller from Microsoft.
The counter attack usually fails, and it makes the incumbent gone. They can not win because they have different values from the disruptor and can not compete in the same arena (here, it is integrating hardware and software. Nintendo is an integrated hardware software company and has some of the best developers so they can easily do this. Sony and Microsoft have game sectors as almost side products, so they will not be able to fight a head on battle requiring amazing software development and integrating it with the hardware).
In the end, the disruptor wins and the industry is now moved by their values (interactivity, interface and accessibility).
Nintendo is not just expanding. They are moving in for a kill. They hope to make the industry new, in their favor of course.
From a very good business book. Seems Nintendo read it but the others didn't.
This has been quoted in another thread by a very knowledgeable guy --respect
What do you think?
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