Integrative Management Week 4 Disruptive Innovation
disruptive innovation ️a process by which a product or service takes root initially in simple
applications at the bottom of a market and then relentlessly moves up market, eventually displacing
established competitors
Low End Footholds ...
Integrative Management Week 4 Disruptive Innovation
disruptive innovation ✔️a process by which a product or service takes root initially in simple
applications at the bottom of a market and then relentlessly moves up market, eventually displacing
established competitors
Low End Footholds ✔️Exist because incumbents typically try to provide their most profitable and
demanding customers with ever-improving products and services, and therefore pay less attention to
less-demanding customers.
- Disrupter can then focus on low-end customers with a 'good enough' product to gain a foothold in the
market
New Market Footholds ✔️Disrupters create a market where none existed.
- Find a way to turn non-consumers into consumers
Sustaining Innovations ✔️Making good products better in the eyes of an incumbent's existing
customers.
- Incremental advances or major breakthroughs that enable firms to sell more products to their most
profitable customers.
Vs. Disruptive Innovations ✔️Initially considered inferior by most of an incumbent's customers.
1. Disruption is a process ✔️Disruption can take time, incumbents frequently overlook disrupters
because at first disrupters do not pose a threat.
2. Disrupters often build business models that are very different from those of incumbents ✔️
3. Some Disruptive innovations succeed, some don't ✔️Disruptive theory says to play the odds and
avoid head-on competition with better-resources incumbents.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller CertifiedGrades. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.99. You're not tied to anything after your purchase.
