Clay Christensen shows how most companies miss out on new waves of innovation.  His answer is surprising and almost paradoxic: it is actually the same practices that lead the business to be successful in the first place that eventually can also result in their eventual demise.

Source: The Innovator’s Dilemma by Clayton Christensen

Here’s a nice summary;

The dilemma occurs when, in order to compete with a disruptive competitor, the firm that originally pioneered or dominated the market would have to cannibalize its own business. What do you do? Cannibalize your own business and fat profits or get eaten away from the low-end up? It sounds like an easy decision when stated simply; however, it’s very hard to justify cannibalizing your own business to your board, investors, and yourself. It’s also sometimes hard for managers and companies without an outside perspective to realize when they are being disrupted.
A disruptive product is cheaper and not as good, but good enough to replace your product on the low-end. It’s what a high-end provider would typically consider junk.

Often, the disruptive product is created or provided using a different technology or process than what is used by established competitors – frequently one that is considered inferior or providing lower quality results initially.

Source: Quora