Examples of Disruptive Innovations

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(part 1 of 4)

Company Disruptive Innovation

Compaq Personal Computer

Dell Direct-Order PC

Toyota Small Cars

Sony Portable Radio, TV

Honda Small, off-road MCs

Merrill Lynch Access, salaried salesman

Charles Schwab Discount trading

Wal-Mart Discount retailing

(part 2 of 4)

Company Est. Firm/Products

Compaq Mini-computers & Mainframes

Dell Retail stores

Toyota Large Cars

Sony Vacuum tube-based electronics

Honda Large, road MCs

Merrill Lynch Wall St. Investment Banks

Charles Schwab Wall St. Investment Banks

Wal-Mart Department stores

(part 3 of 4)

Company Prior Ind. Leader

Compaq IBM, DEC

Dell Compaq

Toyota GM, Ford

Sony RCA, Zenith, Curtis, Mathes, Magnavox

Honda Harley Dav., Indian, Triumph, BMW

Merrill Lynch Goldman Sachs, Morgan Stanley

Charles Schwab Merrill Lynch

Wal-Mart Macy's, May Company

(part 4 of 4)

Company News Customer

Compaq Consumers

Dell Consumers

Toyota Cost and Gas Conscious

Sony Teenagers, People who want choices

Honda Hobbyists, People who want choices

Merrill Lynch Average consumers

Charles Schwab Active Individual traders

Wal-Mart Small town communities

Source: Clark Gilbert

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