That's called retreating 'upmarket' and it usually (historically) fails. IBM is the exception. As clichéd as the Innovator's Dilemma is now, I find very few f

That's called retreating 'upmarket' and it usually (historically) fails. IBM is the exception. As clichéd as the Innovator's Dilemma is now, I find very few folks who have actually read it and processed all the strategies, and case studies in the book. Spinning off a wholly independent entity that can compete at the new price level/market is Christensen's recommended approach. It's all in the book.