What does "colored inside the lines"mean?
For decades, Sears, Digital Equipment, and Xerox colored inside the lines.Th at was the mistake. As Clayton Christensen
chronicles in his classic book, Th e Innovator ’ s Dilemma , these
companies saw the end of their heydays because they failed to
push themselves beyond the status quo.

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Answer

It refers to someone (or companies in this case), who / which never takes risks, someone who always plays it safe.

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