Question

Curtab, a company that manufactures digital watches, implements marketing strategies to attempt to eliminate analog watches from the market and thereby increase the market share of the company. To counter this, analog watch manufacturers introduce new advertising campaigns. In the context of innovation streams, which of the following concepts does this scenario best illustrate?A) Design competition
B) Technological lockout
C) Technological substitution
D) Design iteration

Answer 1

Answer:

A) Design competition

Explanation:

Digital watch manufacturers and manufacturers of analog watches  compete against each other because their products basically satisfy the same needs. Each one offers a very different product with its pros and cons, but even though their products are so different, they can be considered substitutes.

In the concept of innovation streams, Curtab is the innovator that is trying to create a sustainable competitive advantage because it works by designing an innovative product while its competitors rely on updating old designs.