We explore the implications of a real and common alternative to attempting the transformation required to embrace a new, dominant, technology – the choice to maintain focus on the old technology. In considering this choice we distinguish between ‘racing’ strategies, which attempt to fight...

We formalize the phenomenon of disruptive technologies that initially serve isolated market niches and, as they mature, expand to displace established technologies from mainstream segments. Using a model of horizontal and vertical differentiation with discrete customer segmentation, we show how...

We develop an approach to analyzing the sustainability of competitive advantage that emphasizes demand-side factors. We extend the added-value approach to business strategy by introducing an explicit treatment of how firms create value for consumers. This allows us to characterize how consumer...