Profit PocketSM puts Michael Porter's 5 Forces on the Demand Curve and shows the Rivals pushing out

against the
10 other 4 Forces ("Pocket" as in a pocket of soldiers surrounded by the enemy and fighting out, or an American football quarterback dropping
back to pass and the offensive line forms a pocket and pushes out against the defense to protect him). Clayton Christensen's Disruptors
are outside the Pocket making products less capable but improving, and Vijay Govindarajan's Reverse Innovators
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are developing products 50% less capable but 85% less costly.

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$'s: Price, Revenue, Costs, Profit

BUYERS
6
Current Industry Price that Rivals Are
Pushing Up to Support & Buyers are
5 Pushing Down to Capture Value for
ENTRANTS

Themselves

4
Economic Profit Disruptive Innovators'
(5 - 3.3) x 4 = 6.8 Consumer Price of less capable
3 Surplus products meeting the
from needs of less
demanding customers
Innovators

RIVAL RIVAL
2 Disruptive Producers make Reverse Innovators'
products less capable than 50% less capable

UNMET
current industry but much product at 85%
lower price, & some cheaper price
1 customers are willing to
DEMAND
DEMAN
accept the tradeoff.

0
0 SUPPLIERS
1 2 3 4
Quantity (k)
5
© 2019 Confidential to Ted J Brandewie Profit Pocketsm
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