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In interpreting the role of disruptive technologies in the relative success and failure of firms, this paper uses Christensen’s principles to review the strategies of Amazon.com and Barnes & Nobel. The core argument of the paper is based on the assertion that firms that fail to recognize the uniqueness of a disruptive technology fall short of succeeding in their line of business. The argument is conducted by reviewing the various aspects of disruptive technology, as they relate to the business of selling books online. In a final synthesis, insights based on occurrences within the US e‐business context are presented.

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