Davidow's Law illustration
Business Strategy / Innovation / Technology
Business Strategy / Innovation / Technology

Davidow's Law

Cannibalize your own products before rivals cannibalize you.

Popularity
Usefulness
Aliases
William H. Davidow principle / obsolete-your-own-product rule / first-mover rule
Domains
Innovation, technology strategy, product management, competition

Definition

  • Davidow's Law holds that a company should be the first to make its own products obsolete — introducing the next generation before a competitor does it for you.

Core Idea

  • Cannibalize your own products before rivals cannibalize you.
  • Being first to the next generation captures the market and sets the standard.
  • Clinging to current products invites disruption.

How It Works

  • Markets reward whoever defines the new standard first.
  • If you wait, a competitor's new product makes yours obsolete.
  • Continuously replacing your own offerings keeps you ahead.

Usage Example

  • A chip maker launches a faster new processor that undercuts its own current best-seller, capturing the upgrade market before a rival can.

Famous Example

  • Example: Intel's strategy of pushing newer chips and shortening the commercial life of older ones to set the next market standard first.
  • Why it fits this rule: It prescribes self-disruption to stay ahead.
  • Verification status: Matches MBA's summary of Davidow's rule and William H. Davidow's technology-strategy argument.

Use Cases / Situations Where It Applies

  • Technology and product strategy.
  • Fast-moving, innovation-driven markets.
  • Avoiding disruption.

When Not to Use or Common Misuse

  • Do not obsolete products so fast you confuse or exhaust customers.
  • Do not cannibalize without a stronger replacement ready.
  • Do not apply it where stability is more valued than novelty.

Rule Invention / Origin

  • Invented by: William H. Davidow.
  • Year of invention: Late 20th century.
  • Country / context of origin: United States (Intel / Silicon Valley).

Evidence / Research Basis

  • Consistent with first-mover advantage and disruptive-innovation research.