A recent episode of Planet Money described the process of “creative destruction”. "By 1991 Walmart has taken over Woolworth’s place on the Dow Jones, by 1997 Woolworth’s has closed down all of its stores […] Why isn’t Woolworth’s prepared to make that change, they should be better prepared than anyone. They could’ve been Wal-Mart, why didn’t they go out to the rural areas and build giant stores? […] When you have an incremental innovation, where it’s just about trying to do what you already do a little bit better, the established firms are really good at that, they’ve got all the resources and all the expertise. But whenever there’s a disruptive innovation that comes along, a totally different way of doing something, that causes a problem for the established firms."
Adapting to Survive
Adapting to Survive
Adapting to Survive
A recent episode of Planet Money described the process of “creative destruction”. "By 1991 Walmart has taken over Woolworth’s place on the Dow Jones, by 1997 Woolworth’s has closed down all of its stores […] Why isn’t Woolworth’s prepared to make that change, they should be better prepared than anyone. They could’ve been Wal-Mart, why didn’t they go out to the rural areas and build giant stores? […] When you have an incremental innovation, where it’s just about trying to do what you already do a little bit better, the established firms are really good at that, they’ve got all the resources and all the expertise. But whenever there’s a disruptive innovation that comes along, a totally different way of doing something, that causes a problem for the established firms."