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BUS 5114 Case 3 Assignment
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A guide to case study on disruptive innovation shown by TikTok with detailed SWOT analysis
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IntroductionDisruptive innovation is a disputable term in that many researchers and experts couldn't agree on
which innovation can be classified as disruptive. Based on Christensen et al., (2021), there are
two types of technologies namely sustainable technology and disruptive technology. Sustainable
technology is focused on improving the operational performance of a product or service to yield
a better profit for an established business.
Disruptive innovation is a term given to innovations that transform markets by developing a
product or service which was meant for a small segment of the market and making it affordable
and accessible to a broader market (Twin, 2021). These innovations disrupt the market by
displacing established businesses and creating new demands. Products and services could
become obsolete and businesses could collapse because of disruptive innovation.
How is the company an example of disruptive innovation today? Discuss how the company
fits the model of disruptive innovation
One of the features of disruptive innovations is that it originates in low-end or new-market
footholds (Christensen et al., 2021). This is because the established businesses focus on the high-
end market and don't pay attention to the low-end market which creates an opportunity for
disrupters. When a business makes a good quality product affordable to a low-end market the
opportunity is born. Another possibility is when a business gets a new-market foothold by
turning non-consumers to consumers through disruptive innovations.
One innovation that satisfies the above criteria and can be regarded as disruptive innovation is
TikTok. TikTok provides its users the capability to create, share ad watch short clips of pranks,
tricks, dances, memes, or other performances (DataTrek, 2020). Its target audience is teens and
young adults mostly in their early twenties. The innovation is developed by a Chinese high-tech
company called ByteDance.
Discuss how the company you have chosen was able to gain a competitive advantage.
Discuss the company’s value proposition and how it successfully gained an advantage.
The app is focused on the low-end market (teens and young adults) and provides a free service
and comfortable environment (DataTrek, 2020). ByteDance created an innovative business
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