Before diving in, we want to let you know today is the last day to apply for the Fall 2024 Category Design Academy cohort. You can learn more about why member Danny Bauer calls it “the best investment I’ve made in myself” here and apply here. It’s going to be legendary! 🏴☠️
Dear Friend, Subscriber, and Category Pirate,
In this Pirate Jam Session, we take a category lens to The Innovator's Dilemma, Clay Christensen’s groundbreaking work that altered how many businesses think about innovation.
But here’s the catch:
Christensen’s “disruptive innovation” advice is the exact opposite of what category-designing companies should do, especially for incumbents.
Following his “disrupt yourself” strategy might actually be the fastest path to failure.
This is not about downplaying Christensen’s legacy but instead recognizing where his framework falls apart—especially when applied to category-defining companies like Apple, Microsoft, and Tesla. These Category Kings cemented their category leadership by creating radically different offers that redefined markets and captured premium pricing.
Not by racing to the bottom.
Not by lowering prices.
Not by offering stripped-down versions of their products.
If you follow The Innovator’s Dilemma to the letter, you end up in a race to the bottom—a sea of sameness with cheaper, less interesting products.
Successful companies today don’t win by “disrupting” themselves. They win by designing entirely new categories, reframing problems, and proclaiming bold new futures. Because to truly innovate, you have to start by rejecting the premise.
Here’s what we jam on:
Category Design vs. Disruptive Innovation: How The Innovator’s Dilemma can lead businesses astray by promoting the wrong kind of innovation. And why designing (or reframing) a new category is the key to long-term success, not racing to the bottom with cheaper alternatives.
The Fallacy of Disrupting Yourself: Why following Christensen’s advice to “disrupt your own business” often leads to diluted brands and weakened market positions. (Case in point: United’s "Ted" and GM’s "Saturn.”) And why today’s most successful companies reject Christensen’s framework and double down on category design.
How Category Kings Win: Category-leading companies focus on Superconsumers and solving their biggest problems, not reacting to competitors or new technologies. See practical examples of businesses that used category design to dominate their markets without falling into the disruption trap.
Listen to learn why following category design, not disruption, is the key to long-term business success.
Key timestamps:
[00:08] – Introduction: Breaking down why The Innovator’s Dilemma is 180 degrees wrong.
[01:37] – The core flaw of disruptive innovation: Products don’t make markets—problems and opportunities do.
[07:16] – The Innovator’s Dilemma prescription: Why creating autonomous units with cheaper offers fails.
[10:39] – The Otis Elevator story: How designing a new category can keep you on top for over a century.
[16:44] – What Les Paul’s electric guitar teaches us about solving radically different problems.
[25:00] – United’s Ted and GM’s Saturn: Classic examples of failed disruption strategies.
[38:51] – The Specialized e-bike story: How reframing problems leads to category dominance.
[43:47] – Why Category Kings like Apple and Microsoft continue to dominate decades later.
Stay tuned for the full mini-book and framework, coming next week.
Arrrrrr,
Category Pirates
What "The Innovator's Dilemma" Misses, And Why It Can Be Dangerous For Your Business