Question

After Jeff Bezos read about how the Internet was growing by 2,000 percent a month, he set out to use the Internet as a new distribution channel and created Amazon, which is now the world's largest online retailer. This is clearly an example of:
A. A firm with a strong core competency in R&D.
B. An entrepreneur who transformed invention into an innovation.
C. An entrepreneur who tried to harvest the remaining demand on the Internet.
D. Someone who focused on the "short head" of the Internet.

Answer 1

Answer:

B. An entrepreneur who transformed invention into an innovation.

Explanation:

In this scenario, the invention is the internet, which even if it had already been invented decades ago, was still in a development stage: by 1994, when Amazon was founded, less than 10% of Americans had access to the internet.

An innovation can be defined as the creation of a new way to solve an existing market need. The market need was the demand for books, and the innovation consisted in using an invention, the internet, in a new way: establishing an online-delivery service, to meet the demand for books. Needless to say, the innovation was estremely succesful and now Jeff Bezos is a top of the wealthiest people alive.