4. Entrant firms gain an attacker’s advantage by establishing the market.
5. Established firms are “locked” into current strategies and cost structures. Switching to new disruptive products is not profitable for them.
Principle 2: Small Markets Don’t Solve the Growth Needs of Large Companies
Match the Size of the Organization to the Size of the Market
Principle 3: Markets that Don’t Exist Can’t Be Analyzed
Principle 4: An Organization’s Capabilities Define Its Disabilities
Principle 5: Technology Supply May Not Equal Market Demand