Question

What is Digital disruption? Explain with any one example.

Answer 1

Digital disruption is referred to as the new business model and digital technologies that enter the market and affect the proposition of existing goods and services. It results in the change of consumer needs and hence the market of the existing good suffers extremely bad and might lead to the exit of the market from the industry.

An example of this is :

Kodak was one of the first to introduce cameras to the mainstream market. They were respected monopoly in the market but they failed to keep up with changing demands and changing technologies.

Digital cameras made the move from being a just piece of photographic equipment to being a much more life-friendly, fun gadget.The Kodak company usually targeted the female market, the other companies started the male "gadget" culture. There was clever marketing strategies used by other digital companies and finally the consumers felt a need to change their demand and preference of more digitized photographic gadgets.

This allowed brands such as Sony and Canon to capture the market and the people's possibilities in the field of photography. Ultimately, after fighting really hard with its original stagnant idea, Kodak declared bankruptcy in 2012 and failed to exist.