Abstract: This case study focuses on Insta360, a leading enterprise in China's intelligent imaging industry, and details its strategic responses to DJI, the drone giant, during a cross-boundary invasion that unfolded in three stages—gradual confrontation, two-way incursion, and close-quarters combat—revealing a distinctive path for a niche-market champion to break free from involutionary competition. During the gradual confrontation stage, Insta360 concentrated on differentiated niche markets such as panoramic action cameras and AI-powered imaging, steering clear of the giant's strengths. During the two-way incursion stage, faced with DJI's supply-chain blockade and price suppression, Insta360 responded with asymmetric competition—proactively developing a second-source supply system and mounting selective counterattacks—while striking back into DJI's home turf with its panoramic drone, the Yingling Antigravity. During the close-quarters combat stage, Insta360 exercised restraint under patent-war pressure, proposed a “hardware + software + data” strategy, proactively cut drone prices, and evolved toward the “photography robot” arena. The case illustrates how Insta360 dynamically built systemic competitive barriers through a strategic leap of “differentiation focus—asymmetric competition—data flywheel,” providing a real-world example for tackling involutionary competition. It helps students deeply understand the essential characteristics of and coping strategies for involutionary competition, grasp the logic of strategic adjustment and the pathway of capability building for enterprises in dynamic environments, and offers reference for firms seeking to build sustainable competitive advantages.
Keywords: Intelligent Imaging Industry; Involutionary Competition; Cross-boundary Competition; Competitive Strategy
