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And it is easy to show the fallacy of that. RIM/BlackBerry was winning too at the time.

The thing he missed is that the profits are a lagging indicator - they are the results of what you did in the past, not about the future. The companies in The Innovator's Dilemma had exactly the same profile - they had worked out how to be profitable and serve their customers well, right up to the point both fell off a cliff because what customers valued had changed.



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