Question

In: Economics

Give me an example of a disruptive innovation and discuss how the innovation disrupted the market.

 

Give me an example of a disruptive innovation and discuss how the innovation disrupted the market.

Solutions

Expert Solution

What is disruptive innovation-Disruptive innovation, a term of art coined by Clayton Christensen, describes a process by which a service takes root initially in simple applications at the bottom of a market and then relentlessly moves up market, eventually displacing established competitors. Smartphones are the ultimate disruptive innovation because they have almost made the following items obsolete: landline phones, pagers, digital cameras, portable music players, portable game players, portable video players, and portable navigation and devices.Smartphones are the most successful and popular consumer electronics product with innovation in history of technologies. Multi-functional capabilities make them extremely popular, and smartphones do more while costing less. Smartphones are rapidly replacing many products in a variety of industries. For example, they are replacing print media such as books and magazines, changing this industry incredibly and making print media almost obsolete. Furthermore, mobile Internet users have increased 50% from 2010-2011, suggesting that the smartphones are in their prime product life cycle and their growth rate is strong. An example of modern disruptive innovation is the Internet, which significantly altered the way companies did business and which negatively impacted companies that were unwilling to adapt to it.a disruptive innovation is an innovation that creates a new market and value network and eventually disrupts an existing market and value network, displacing established market-leading firms, products, and alliances. Not all innovations are disruptive, even if they are revolutionary.The term “disruptive innovation” is misleading when it is used to refer to a product or service at one fixed point, rather than to the evolution of that product or service over time. The first minicomputers were disruptive not merely because they were low-end upstarts when they appeared on the scene, nor because they were later heralded as superior to mainframes in many markets; they were disruptive by virtue of the path they followed from the fringe to the mainstream.Success in innovation is never guaranteed. There are still many hurdles (marketing, technical, cashflow, etc.) that need to be overcome for your innovation to be a success, whether it's an incremental or a disruptive innovation.Many organizations risk complacency once their current product offerings have reached success. The fear of pulling investment, resources or customer attention from existing offerings can be one of the biggest hindrances to future innovation. However, constant innovation is the key to sustained success long-term. So it is clear that disruptive innovations have advantages with certain disadvantages.


Related Solutions

Give an example of radical innovation, and compare it to incremental innovation (how do you know...
Give an example of radical innovation, and compare it to incremental innovation (how do you know this is radical innovation?). Be original
Discuss how the concept of disruptive innovation has impacted hugely successful companies over the past few...
Discuss how the concept of disruptive innovation has impacted hugely successful companies over the past few decades (provide examples); is it still a concern? Why?
How does disruptive innovation play a role in delivering a new product?
How does disruptive innovation play a role in delivering a new product?
The electric car is an innovation that will be a high disruptive change and that will...
The electric car is an innovation that will be a high disruptive change and that will have an important effect into the global economics and the geopolitical international relations. As you know, petroleum is a key driver for geopolitics and an innovation from the technological point of view can imply different global economics relations and geopolitics relations. 1. What will be the effects of the transition to electric mobility on the oil market (demand, price, supply, …). What will be...
Business Model Innovation: How Dollar Shave Club Disrupted Gillette . How was Gillette initially able to...
Business Model Innovation: How Dollar Shave Club Disrupted Gillette . How was Gillette initially able to gain a competitive advantage? Was Gillette able to sustain its competitive advantage? If so, how?
Give me an example of invitation to offer
Give me an example of invitation to offer
How do I calculate the up-market Beta? Can you give me an example please? Can you...
How do I calculate the up-market Beta? Can you give me an example please? Can you give an examp;le of when it is was a good market timer and when it is a bad market timer
Explain how disruptive innovation affects sustainability in the context of a selected industry. Support your answer...
Explain how disruptive innovation affects sustainability in the context of a selected industry. Support your answer with relevant examples.
Can someone give me an example an non example of coefficient?
Can someone give me an example an non example of coefficient?
A disease state results when homeostasis has been disrupted. Give a specific example of a disease...
A disease state results when homeostasis has been disrupted. Give a specific example of a disease state of the organ system you chose (integumentary, skeletal, muscular, nervous). What causes this disruption to homeostasis? How does the body resolve this disease?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT