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Competing Against Luck: The Story of Innovation and Customer Choice · 1 of 12
Competing Against Luck: The Story of Innovation and Customer Choice
Entrepreneurship MEDIUM

Key Case Studies

Competing Against Luck: The Story of Innovation and Customer Choice Clayton M. Christensen, Taddy Hall, Karen Dillon, David S. Duncan
case-studies examples snhu ikea american-girl intuit

Key Principle

Each case study reveals a specific mechanism of Jobs Theory in action. This reference catalogs the major cases and what each one teaches -- the job discovered, the causal insight, and the outcome.

Why This Matters

Case studies are not illustrations; they demonstrate causal mechanisms. Each reveals a different failure mode or success pattern: nonconsumption missed, emotional dimensions ignored, anxiety unaddressed, organizational drift from the job. Pattern-matching across cases is how practitioners internalize the theory.

Good Examples

Milk Shake (Ch. 1-2) -- Morning commuters hired a milk shake to fill breakfast and entertain during a boring drive; evening parents hired the same product to feel like a good dad. Same product, two entirely different jobs driven by circumstance. Reveals: circumstance, not the product, is the unit of analysis.

SNHU (Ch. 3, 9) -- Adult online learners (avg. age 30, juggling work/family) were not choosing between colleges; they were choosing between SNHU and doing nothing. Job: convenience, customer service, credentials, speedy completion. Required a physically separate organization from the traditional campus. Revenue grew from $32M to $535M (34% CAGR over six years). Key metric: 95% of graduates said they would do it all over again. (Ch. 3, Ch. 9)

Moesta Condos (Ch. 4) -- Demographics could not predict downsizer buyers. The real barrier was emotional anxiety about discarding a life's worth of meaning -- the dining room table with its dings from birthdays. Solution: moving services, two years of storage, a sorting room, reducing choices from 30 pages to 3. Result: 25% growth in 2007 while the industry fell 49%. (Ch. 4)

IKEA (Ch. 6) -- Job: furnish a place quickly on a budget. Obstacles anticipated: children in tow, no truck, assembly difficulty. Experiences designed for each: childcare, flat-pack for car transport, single-tool assembly with tool included. "Other furniture stores can copy IKEA's products. They can even copy IKEA's layout. But what has been difficult to copy are the experiences." (Ch. 6)

American Girl (Ch. 6) -- Competitive moat is the experience ecosystem: historical books, stores with restaurants and doll hospitals, packaging designed to a two-cent belly band adding "twenty-seven seconds" to the unwrapping. 29 million dolls sold, $500M+ annual sales. Competitors "thought it was a product. They never got the story part right." (Ch. 6)

QuickBooks / Intuit (Ch. 3, 9) -- "Half the functionality at twice the price" yet became global leader. Small business owners' job was confidence that money flowed efficiently, not accounting expertise. Competition was spreadsheets, a shoebox of receipts, or hiring a bookkeeper. Built $4B revenue and $25B market cap. TurboTax later fell into feature chase until the job was reframed as completing taxes without the customer answering any questions. (Ch. 3, Ch. 9)

FranklinCovey (Ch. 3) -- CEO Bob Whitman: "We try to position ourselves around jobs that don't have competitors." Positioned around the job of personal effectiveness rather than the product category of planners or training. (Ch. 3)

Medtronic India (Ch. 6) -- Biggest competition was nonconsumption, not rival pacemakers. Four barriers: patient awareness, diagnostics access, care navigation, affordability. Designed corresponding experiences: free screening clinics, patient counselor "Sherpas," fast-approval loans reflecting emotional needs. 167,000 screened, 15,000 treated, 100+ hospital partnerships. (Ch. 6)

Kimberly-Clark Depend (Ch. 4) -- 1-in-3 women over 18 suffer incontinence, yet most waited 2+ years before buying any product. The negative job (avoiding embarrassment, avoiding aging identity) was the barrier. Depend Silhouette addressed the emotional dimension: $60M year-one sales, 30% growth year two. (Ch. 4)

Airbnb (Ch. 5, Introduction) -- Storyboarded 45 emotional moments before launching. Undercut hotels on a "feel like I belong somewhere" job. Won despite scoring poorly on traditional hotel quality metrics because it addressed the real job including emotional and social dimensions. (Introduction, Ch. 5)

OnStar (Ch. 9) -- Employees autonomously offered all services free during Hurricane Rita. Decision took "about a fifteen-second conversation" with the CEO because the peace-of-mind job was so clearly understood. Engineers voluntarily solved a crash-severity algorithm for 911 -- not because told to, but because "they knew what was at stake." (Ch. 9)

Deseret News (Ch. 9) -- "Like-minded believers" comprised 56% of American news consumers yet felt massively underserved. Cultural compass: "We are not the Sacramento Bee." Social media following grew from low millions to over 100 million when strategy was built around the job. (Ch. 9)

Counterpoints

Segway (Ch. 2) -- Conceived around the need for "more efficient personal transportation" with no circumstantial specificity. "But whose need? When? Why? In what circumstances?" Violated: circumstance as causal filter. A product answering a question nobody was asking.

Volvo under Ford (Ch. 6) -- The undisputed purpose brand for safety. Ford tried to reposition it as a luxury brand, severing the causal link to the safety job. Declined until sold at a loss to Geely in 2010. Violated: purpose brand discipline -- extending into jobs where the brand has no earned authority.

Feature-chase organizations (Ch. 9) -- Companies survey customers for desired features, receive expansive wish lists, then spend weeks debating prioritization with no compass. Scott Cook: "We got into feature chase. Too often we'd go look at what customers were asking for and build it." Violated: commander's intent -- no shared understanding of the job to guide tradeoffs.

Key Quotes

"I went in thinking we were in the business of new home construction. But I realized we were instead in the business of moving lives." -- Bob Moesta (Ch. 4)

"Half the functionality at twice the price." -- describing QuickBooks (Ch. 3)

"We got into feature chase. Too often we'd go look at what customers were asking for and build it." -- Scott Cook (Ch. 9)

"I said you're not getting it. What has to happen to make this special to the child? I don't want her to see some shrink-wrapped thing coming out of the box." -- Pleasant Rowland (Ch. 6)

Rules of Thumb

  • If the biggest competitor is inaction (nonconsumption), you need experience design that removes barriers, not better features than rival products.
  • When demographics cannot predict purchase, look for emotional and social dimensions -- the dining room table, the aging identity, the embarrassment.
  • A purpose brand earns its premium by reliably nailing one job; extending it into unearned jobs destroys the causal link.
  • Separate organizations for separate jobs -- one org optimized for one job will systematically degrade another (SNHU's two-org model).
  • Compensating behaviors (workarounds, hacks, avoidance) are the strongest signals that a job exists and current solutions fail.

Related References