The Swiss dominated the manufacture of fine watches until the early 1970’s. They made the best ball-bearings, mainsprings and balance-wheels in the world. But by 1980, the Swiss market share had collapsed to 10% from 65%. The market shift from Switzerland to Japan. The reason: the advent of a new paradigm of watch making-quartz technology.
The kicker is that quartz technology was discovered by the Swiss! But they disregarded it; it didn’t fit into their watch making paradigm – a paradigm made up of ball bearing, main springs, and balance wheels. The paradigm for success shifted and they didn’t shift with it.
Leadership, Volume XIV, Number 3, page96