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Amazon Launches Credit Card For Deadbeats

• by Nicholas Colas

If disruptive innovation always starts with addressing the low end of a market (and it does…) then this move merits attention. If anyone has the technological horsepower to crack the low end of the financial services marketplace, it's Amazon.

Most of what passes for "disruptive innovation" doesn't actually fit that description too well. We haven't talked about this idea for a while, so as a reminder:

Harvard Business School professor Clayton Christensen's original disruption paradigm describes a business that starts life addressing the low end of a market.

To be profitable competing in this segment, the company has a unique edge. Think Japanese "lean manufacturing" in the auto industry or Amazon's original business of selling books on the Internet. Both were novel for their time and gave a definable competitive/financial advantage.

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