Innovation is a challenge for any company, but especially for market leaders in one sector looking to enter into an established market with entrenched competition
"Innovation distinguishes between a leader and a follower" -- Steve Jobs
Frankly I think being a new entrant into an established market space is a far better place to be than to be the market leader, the big dog.
The new entrant can redefine the playing field, turn the leaders' defensive moves back against them, or play a new way to attract a new customer that is looking for a new, innovative solution, rather than the same-old, same-old. The dominant competitor has invested too much in playing the game the old way and so is extremely resistant to change. They don't want to take the risk.
The secret to beating the big dog on the porch is not to think like a big dog, but a little dog. The big dog always loses when he tries to run with the faster, smarter little one.