A great book explaining exactly this: The Innovator's Dilemma (http://www.amazon.com/Innovators-Dilemma-Technologies-Cause-ebook/dp/B004OC07GM/ref=dp_kinw_strp_

A great book explaining exactly this: The Innovator's Dilemma (http://www.amazon.com/Innovators-Dilemma-Technologies-Cause-ebook/dp/B004OC07GM/ref=dp_kinw_strp_1?ie=UTF8&m=AG56TWVU5XWC2 http://www.amazon.com/Innovators-Dilemma-Technologies-Cause-... -- I don't make money from this link) I think every entrepreneur should read and understand the theories illustrated in the book. It made me realize a lot of things, and understand better why old/established businesses are often replaced by startups.