[Octokiddie]

> It was not taken by surprise. But in spite of that, it was still unable to respond.

This is even a major point of discussion in the book. The incumbents always see it coming a mile away. They can't respond because doing so breaks their business model. Employees can't go to managers and say, "We need to enter this low-margin market for low-end products." Doing so is a good way to get sidelined or fired.

The "dilemma" is that either traditional option, compete with the upstarts or move further up-market, leads to the same outcome - death.