Dynamics of a business

Through a detailed analysis on dynamics of a business it was found that, unfortunately, the desire for short term returns can be the undoing. The fattest profit margins are usually at the top, so customers willing to pay a high margin for a superior product become the main focus. The lower margin business at the bottom end receives less and less attention. Yet the greatest threats usually come from the bottom—the very segment established groups are not interested in guarding and there is the starting point for failure. Challengers are able to mount an attack on companies and the become the weakest flank. A disruptive technology is born when someone invents a way to do something more simply and cheaply and they turn out successful with their business strategy. Major innovations often do not work very well when they are first introduced but they are successful in the long run. The top end customers do not want them because they are a threat in business.

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