WHAT CORE STRATEGY IS

Core Strategy is the theory of a high growth new venture's success within the context of the new venture succeeding in incumbent-infested waters. Core Strategy calls out the requirements for the product/production systems, management, marketing and finance plans, given the marketplace circumstances of customers, competitors and complementors.

The Framework

A new venture has incumbent competitors somewhere. Research has substantiated that a new venture that aims its products at the incumbents' best customers will eventually get defeated. This is called the Law of Sustaining Innovation.

SuperLab, through eight years of research and testing, has discovered and codified four exceptions to the Law of Sustaining Innovation. These anomalies are called Core Strategies and there are four. The examples below represent successful high growth start-ups that met the requirements of the Core Strategy they are listed under. Each company was analyzed during the first 1-3 years of their launch. Their launch date is identified.

Substitute Innovation	Disruptive Innovation	Complementary Assets for Sale Innovation	Complementary Asset to Flip Innovation
Horizontal Google-1998 PayPal-2000 Dell-1983 Cirque de Soleil-1983 LeapFrog-1993 MySpace-2003 Business Objects-1990 Double Click-1995 FaceBook-2003	Intuit-1983 Linksys-1988 Apple Computer-1975 YouTube-2005 Skype-2003 SalesForce.com-1999 MinuteClinic-2000 Charles Schwab-1973	Qualcomm-1985 Boston Scientific-1973 Curves-1992 YellowBrix-1997 DivX-1998 Numenta-2005 Softmax-1998 Intel-1968 Fraud Science-2001	NetSift-2004 Oddpost-2001 Finger Twitch-2003 Strangeberry-2002 Cerent-1997 Twingo-2003 MessageRite-2003 Lookout-2003
Vertical Silicon Valley Bank-1982 Fresh Direct-1999 Curves-1992 SAIC-1969 MocoSpace-2006 BillMeLater-2000	For Information on the Complete Framework Pre-publication books now on sale (a limited number of books). Pre-publication price $25.00 To order and pay by credit card call (619) 696-3222. (450 p.)