Solving a different problem
The telephone destroyed the telegraph.
Here's why people liked the telegraph: It was universal, inexpensive, asynchronous and it left a paper trail.
The telephone offered not one of these four attributes. It was far from universal, and if someone didn't have a phone, you couldn't call them. It was expensive, even before someone called you. It was synchronous–if you weren't home, no call got made. And of course, there was no paper trail.
If the telephone guys had set out to make something that did what the telegraph does, but better, they probably would have failed. Instead, they solved a different problem, in such an overwhelmingly useful way that they eliminated the feature set of the competition.
The list of examples is long (YouTube vs. television, web vs. newspapers, Nike vs. sneakers). Your turn.