Disruptive innovations don't need to perform better than incumbents; they simply need to perform well enough to appeal to their customers (and often do so at a lower price). True False

Question

Business

Zander Hart

9 January, 20:04

Disruptive innovations don't need to perform better than incumbents; they simply need to perform well enough to appeal to their customers (and often do so at a lower price). True False

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Answers (1)

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Marc Brady · Answer 1

True

Explanation:

Disruptive innovation refers to a technological change which adversely hampers the existing operations of an industry or it's players. For instance, the advent of USBs and compact discs affected the industry of magnetic tapes and audio cassettes.

Another latest example of disruptive innovation being Netflix which has kind of disrupted the normal operations and profitability of television channels.

Such disruptive innovators do not require to focus on outdoing competitors performance. All they need to take care of is they perform good enough to appeal and retain their customers.