Disruptive innovation is a process by which a product or service takes root initially in simple applications at the bottom of a market and then relentlessly moves upmarket, eventually displacing established competitors. True or false?

Question

Business

Kristina Harrington

11 August, 14:29

Disruptive innovation is a process by which a product or service takes root initially in simple applications at the bottom of a market and then relentlessly moves upmarket, eventually displacing established competitors. True or false?

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Flint · Answer 1

True

Explanation:

A disruptive innovation is a good or service that transforms an existing market by offering something different that displaces older and established products and services. This process generally starts slow (not always) by taking root in the lowest portion of the market due to lower prices, and eventually gains popularity and strength and ends up disrupting the market.

E. g. the iPhone was a disruptive innovation that transformed the cell phone market and did it fast because it was launched by a large corporation, while it took several years for Netflix to change video streaming.