The last time I wrote about innovation, I pointed out some of the most common problems that innovators face (The Disruptor’s Dilemma) and how incumbents can use regulation to stymie the disruptor. Peter Yared has an interesting post up on Techcrunch on how BMW is responding to Tesla’s onslaught and winning. Here’s the tl;dr:
- Legacy companies can mislabel their products to leverage their brand, especially if an upstart compares itself directly to a particular model.
- Legacy companies are often willing to hodgepodge new technology with their older technology to stave off new competitors
- Innovators should not underestimate the power of a legacy company’s large, lumbering sales channel.
- Legacy companies are often in numerous segments of a market and leverage their scale to beat an upstart’s roadmap.
Read the whole thing here: BMW Vs. Tesla