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.
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