Flashcards
Disruptive Technology
Cards in this deck (3)
- 1Disruptive TechnologySustainable innovations are those which mainstream customers demand while innovations that do not satisfy current customers are regarded as disruptive.
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Disruptive technology initially offers a lower performance according to what the mainstream market has historically demanded. At the same time, it provides new performance attributes which makes it prosper in a different (may be new) market. As it improves along the traditional performance parameter, it eventually displaces the former technology. - 2Examples of Disruptive Tech.1. Transitor radio vs Analogue Radio
trad perf: worse sound
new perf: low battery consumption, portable
Transitor radios were first used by teenagers going to the beach. As the qualiy of the sound improves, it eventually displaced analogue radios.
2. Pocket calculator vs desktop calculator
trad perf: worse computing performance
new perf: portable
Over time, he computing performance of these smaller and simpler calculators was improved. As they became cheaper and were sold in higher and higher volumes, sales offices lost their value. Calculators started being sold in large retail stores and bookstores. - 3End - conclusion (incumbents/entrants)Hence, incumbents please customers they have not ones they don't have while entrants look for new markets. Therefore, entrants have the advantage of not being 'locked-in' to a situation. They have lower costs of hitting new market sectors and thus gain some advantage.
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- Bachelors Degree Business in a Competitive Environment Flashcards on Disruptive Technology, created by ariane.liongiust on 30/04/2016.
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