Question

As a start-up company, Virtue Mobiles Inc. entered the low end of the highly competitive cell phone industry with its low-cost smartphones. Initially, the company was able to sell its inferior technology due to its low prices. Over the years, however, its rate of technology improvements increased above the industry standards. This helped the company to create a strong strategic position for its smartphones in the high-end segment and claim a premium price. Which of the following types of innovation does this scenario best illustrate?
A) Radical innovation
B) Incremental innovation
C) Architectural innovation
D) Disruptive innovation

Answer 1

Answer is Incremental Innovation (B)

Explanation:

Understanding each type of Innovation is crucial:

Radical Innovation is what we generally think of when we think of the concept of innovation. It is the revolutionary kind of innovation that births new industries but necessarily do not disrupt alternative existing industries. For example: The invention of airplane brought about the rise of the aircraft industry, while we still have the automobile industry.

Incremental Innovation has to do with making small or gradual improvements to an existing product or technology, thereby increasing value to customers.

Architectural Innovation is a type of innovation that has to do with bringing a proven technology or idea with its whole concept and applying it to a different market. Though it may require altering few parameters in its concept to suit the requirements of the new market.

Disruptive Innovation is that innovation of bringing and applying new technologies or idea to a current existing market, which mostly makes the existing technology or idea in the market obsolete.

I hope this helps you?