Question

In: Operations Management

Provide an example of a corporation that disrupted its industry’s traditional value chain in a way...

Provide an example of a corporation that disrupted its industry’s traditional value chain in a way that changed how rivals view global competition. Which was more instrumental, the corporation’s unique resources and competencies, or factors in its industry’s competitive conditions?

Solutions

Expert Solution

The typical example of the company which caused the sweeping industry disruption is Apple Inc. With the development of the iTunes service, the company facilitates the customers to listen and download the favourite music without requiring to visit the music store in the nearby locality. This also overcomes the requirement of buying the whole CD of 8 songs which could cost up to $12 and the customers can simply click their favourite songs and can pay less than $1 for their selected songs. This service has significantly changed the overall scenario in the recording industry and thus disrupting the old and traditional marketing practices and thus forming some of the new collaborations.

For the music lovers around the world, this service is quite useful. The customer can buy only those songs which he really likes and the songs of any region can be downloaded provided the accessibility to the internet. But when it comes to record stores, three will be a requirement of complete re-invention of their business model.

In my opinion, the success of Apple in this field is more closely associated with the unique resources and capabilities in comparison to any other factor. The similar type of success can also be witnessed with the other products of Apple such as iPod, iPad and iPhone. At present, Cupertino company is also trying to disrupt the radio industry b offering new, to the Smartphone, iTunes radio service


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