Thursday, September 20, 2012 [Tweets] [Favorites]

Good Enough

Horace Dediu:

Disruption theory has taught us that the greatest danger facing a company is making a product better than it needs to be. There are numerous incentives for making products better but few incentives to re-directing improvements away from the prevailing basis of competition.

Kyle Baxter:

The reason for this is that once a product is “good enough”—it actually more than meets the customers’ needs—there is no basis for competing by making the product better. Instead, you have to compete by making it cheaper. The product becomes a commodity where price is the main differentiator.

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