Electric bicycles are disrupting the motorcycle market

Like most disruptive innovations, the motorcycle industry doesn’t realize it’s being disrupted

Many people are wondering why Harley-Davidson is sinking or why electric motorcycles aren’t more dominant already. A large part of the explanation is from the The Innovator’s Dilemma, Christensen and Raynor’s key work which is explanatory of so much in this rapidly evolving time. People are simply looking at the wrong segment of the market — at motorcycle manufacturers instead of electric bicycle manufacturers.

Disruptive innovation is straightforward and proven empirically. Market leaders on the top line are full-featured and have the loyalty of the most demanding customers. An innovator coming in with a much less fully featured solution which meets enough of the requirements but at a much lower price point or with convenience that is unmatched by the market leader will find a market niche. Over time, the innovator will grow their capabilities to meet close to 100% of the market and maintain their innovative differences. The former market leader is eventually left with only a tiny slice at the top end of the market. This has played out in photocopiers, photography and transportation along with many other domains multiple times over the past decades.