Low End Tech Upstart Moves Up-Market to Compete with Incumbents

MediaTekRevenueGraph2010-05-20.gif

Source of graph: online version of the WSJ article quoted and cited below.

The MediaTek example briefly mentioned below, seems a promising fit with Christensen’s theory of disruptive innovators.

(p. B7) TAIPEI–A little-known Taiwanese chip-design company is making waves in the cellphone business, grabbing market share from larger U.S. rivals and helping drive down phone prices for consumers.
. . .
While MediaTek isn’t known for cutting-edge innovation, it has been able to apply the nimble, cost-cutting approach of Taiwan’s contract manufacturers to the business of designing semiconductors, in which engineers use advanced software to lay out the microscopic circuits that make gadgets like cellphones function.
“MediaTek has brought down the cost significantly,” says Jessica Chang, an analyst at Credit Suisse Group AG, who says mobile-phone makers are increasingly drawn to MediaTek’s products because of their functionality and low cost.

For the full story, see
TING-I TSAI. “Taiwan Chip Firm Shakes Up Cellphone Business.” The Wall Street Journal (Mon., APRIL 19, 2010): B7.
(Note: ellipsis added.)

On Christensen’s theories, see:
Christensen, Clayton M., and Michael E. Raynor. The Innovator’s Solution: Creating and Sustaining Successful Growth. Boston, MA: Harvard Business School Press, 2003.

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