How to respond to disruptive strategic innovation

Costantinos C. Markides and Constantinos D. Charitou

Contrary to conventional wisdom, disruptive strategic innovations are not necessarily superior to the traditional ways of competing, nor are they destined to conquer the market.

How To Respond To Disruptive Strategic Innovation

Costantinos D. CharitouN.P. Lanitis LtdandConstantinos MarkidesLondon Business School

 

In the mid-1990s, European airline giants such as British Airways and KLM came under attack from relative newcomers like easyJet and Ryanair. Rather than embrace the full-service, hub-and-spoke strategy of the major airlines, the upstarts introduced a low-cost, point-to-point, no-frills strategy that proved a hit with European consumers. Before long, they had captured a large segment of the market, and established airlines in Europe were searching for answers to the threat.

Meanwhile, Merrill Lynch was searching for answers in response...

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