The Power of Little Ideas

LEGO and Apple Computer Masters of the Third Way

In chapter 1, we saw how three different companies in three different industries found and pursued an approach to innovation. Using the Third Way, they turned around a faltering brand, displaced an entrenched market leader, and launched a successful startup. In every case, they succeeded despite major competitive disadvantages in their core product.

None of these three firms—Gatorade, Novo Nordisk, and CarMax—was following a playbook. Each was simply doing something it considered smart. Yet they all found their way to the same approach. They succeeded by surrounding a core product with small ...