Why incumbents are being beaten by challengers in business

Why incumbents are
being beaten by
challengers in
business?

INTRODUCTION...............................................................................................................................2
MAIN BODY.......................................................................................................................................2
Identify one incumbent and challenger in business............................................................................2
Explain several reasons why incumbents are being beaten by challengers in detail..........................3
Why challengers beat the incumbents................................................................................................4
Explain the reasons for incumbents being beaten by challenger........................................................5
Role of technological innovation including disruptive technologies and how these technological
innovations have impacted these businesses (both incumbent and challenger)..................................5
CONCLUSION....................................................................................................................................7
REFERENCES....................................................................................................................................8

INTRODUCTION
Incumbent is the organisations which have leading market position as well as they are
powerful existing players within an arena. In addition to this, organisations which are
incumbents are also tend to have better visibility, access to resources as well as more
experience. On the other hand, challengers are the new competitors who try for gaining
market shares within competitive business environment.
In this report, incumbent is Blackberry Limited which launched in 1999 on 19th
January which was 21 years ago. On the other hand, challenger is Apple Inc. who is
American multinational technology company founded in 1976. Respective report will be
going to discuss several reasons that why incumbents are being beaten by challengers along
with this, challengers beat the incumbents. Moreover, why challengers beat the incumbents as
well as reasons for incumbents being beaten through challenger. In addition to this, role of
technological innovation including disruptive technologies and how these technological
innovations have impacted these businesses (both incumbent and challenger). End section
will discuss many reasons which support argument by comparing incumbent and challenger.
MAIN BODY
Identify one incumbent and challenger in business
Incumbent – They are the companies which have leading market position as well as
they are powerful existing players within an arena. In addition to this, organisations which are
incumbents are also tend to have better visibility, access to resources as well as more
experience. Along with this, incumbent may be referring to leader of company which hold
large portion of overall industry’s market share. For instance, Blackberry is line of
smartphone, tablets as well as service originally designed and market by Canadian company
i.e., Blackberry Limited. Respective organisation was launched in 1999 on 19th January which
was 21 years ago.
Challengers – They are the new competitors who try for gaining market shares within
competitive business environment. In addition to this, market challengers are the organisation
that tries for expanding market share through aggressively flooding the market with their
products at competitive prices. Moreover, market challengers are the business firm that
generally at no. 2 or 3 position in business environment. In simple term it can be said that,
challengers always come with something innovative in market area for challenging