Companies located in developing countries are currently serving billions of local consumers with innovative and inexpensive products. What happens when more of those companies make the leap into more developed markets?
Disruptive innovation has been credited as the strategy that led to Japan’s dramatic economic development after World War II. Japanese companies such as Nippon Steel, Toyota, Sony and Canon started out by offering inexpensive products that were initially inferior in quality to those of their Western competitors. This allowed the Japanese manufacturers to capture the low-end segment of the market. Over time they continuously improved the performance of their products and began to move upmarket, into segments that allowed them more profitability. Eventually, the Japanese companies captured most of these segments and in the process pushed their Western competitors to the very top of the market or completely out of it.
To read the original article: Emerging Market Disruptive Innovations | Innovation Management
