Strategy & Games
Low-End Disruption
A new entrant captures a low-end market segment that incumbents disdain—characterized by low prices, thin margins, and small customer bases. The entrant progressively improves its offering and moves upmarket, eventually displacing the incumbent. The incumbent, protecting its high-margin core business, abandons the low end, inadvertently ceding the space where the disruptor can flourish.
Read the daily articles behind this idea on the Chinese edition.