Question

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 up market. True or false

Answer 1

Answer:

The correct answer is True.

Explanation:

The concept of “Disruptive Innovation” is relatively new, it was introduced by Clayton Christensen in 1997 in the book “The innovators dilemma” and refers to how a product or service that originally was born as something residual or as a simple application without Many followers or users quickly become the leading product or service in the market.

Disruption therefore occurs when emerging companies use new technologies or new business models and outperform the market that were the leaders until then.

There comes a time when users do not perceive as a differential advantage the type of evolutionary innovation that has been applied to a product, because they no longer need all those new features that the manufacturer has added to increase the profit and then the manufacturer becomes vulnerable and the evolution of that particular product ceases to be decisive, from that moment the price of that product can become decisive or another product will arrive with a new disruptive technology that will compete with the previous product and with the established technology. The most normal is that new products or services are easier to use and cheaper than products that were already on the market before and thus quickly capture the interest of consumers.