Why do established companies like Kodak or Blockbuster fail despite strong management?
Clayton Christensen's "The Innovator's Dilemma" explains: Incumbents prioritise sustaining innovations for high-margin customers, overlooking disruptive technologies that begin in niche markets but eventually dominate.
Thread: How @Coinbase is addressing this challenge through Base, led by @brian_armstrong and @jessepollak .
In the book, disruptions start as inferior but accessible alternatives, evolving to upend markets. In crypto, DeFi and L2 solutions threaten centralized exchanges like Coinbase.
Rather than ignore this, CEO Brian Armstrong directed Jesse Pollak to explore onchain opportunities, with the ultimate goal of onboarding 1B users to crypto.
Jesse, considering departure in ~2021 due to Coinbase's centralized focus, was given a small, protected team to innovate.
The outcome is @base: An $ETH L2 network enabling low-cost transactions (under one cent, sub-second speeds), DeFi, social applications, and the recently launched @baseapp in July 2025—an integrated platform for wallets, messaging, and payments. This approach allows Coinbase to self-disrupt and secure its position in the decentralized economy.
Long-term advantages include diversified revenue from sequencer fees, enhanced user retention through ecosystem integration, and a strategic moat. Business scholars may one day analyse Armstrong's strategy as a prime example of overcoming the Innovator's Dilemma.
Bullish $COIN
1.78K
12
The content on this page is provided by third parties. Unless otherwise stated, OKX is not the author of the cited article(s) and does not claim any copyright in the materials. The content is provided for informational purposes only and does not represent the views of OKX. It is not intended to be an endorsement of any kind and should not be considered investment advice or a solicitation to buy or sell digital assets. To the extent generative AI is utilized to provide summaries or other information, such AI generated content may be inaccurate or inconsistent. Please read the linked article for more details and information. OKX is not responsible for content hosted on third party sites. Digital asset holdings, including stablecoins and NFTs, involve a high degree of risk and can fluctuate greatly. You should carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition.