What is creative destruction? Can you find examples of technological causing creative destruction today?

What is creative destruction? Can you find examples of technological causing creative destruction today?

Expert Solution

To make way for creativity, creative destruction can be defined as the dismantling of long-standing practices. Productivity-enhancing innovations in the manufacturing process but the term has been used in many other contexts.

Netflix 's success is an excellent example of "creative destruction," a term coined in the 1940s by economist Joseph Schumpeter, who characterized it as the "process of industrial transformation that continually revolutionizes the economic system from within, continuously replacing the old one, constructing a new system without ceasing. This creative destruction process is the essential fact about capitalism. "Actually, Netflix has been so disruptive to existing industries that some are now calling its impact the" Netflix effect. "Here are some examples of the" Netflix effect "and the" Netflixed "industries.

The Internet is perhaps the most comprehensive example of creative destruction, where not only retail clerks and their employers were the losers, but bank tellers, secretaries, and travel agents. The mobile Internet, from taxi cab drivers to mapmakers, has added many more losers.

Rahul Sunny answered 2 years ago

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