DISRUPTIVE
INM VOLUME 9
INNOVATION
has occurred The strategy behind disruptive
product line to be able to satisfy the needs of
innovation is to tap a new market segment where
theexisting customers is called sustainable
there is no competition and then develop better
innovation On the other hand disruptive
products or services which could meet the
innovation is entering into a new market
expectations of the mainstream customers Let us
addressing the needs of new customer
consider the example of Uber Cabs People
segments by providing them with products or
consider it as an example of disruptive innovation
services at affordable prices Disruptive
But that is wrong Although the company
innovation is a process The first minicomputers
became highly profitable over night Uber did not
were disruptive by virtue of the path they
enter any un served market It came up with
followed from the fringe which is the low end
improved services for the mainstream market in
market or the new market to the mainstream
U S that consisted of people who hired cab
When disrupters succeed their movement from
rides Disruptive
the fringe towards the mainstream erodes first
innovations
the incumbents
originate in low
market share
end or new market
and then the
footholds In the
profitability
early days of
Disruptions
photocopier
take time
technology Xerox
therefore the
targeted large
incumbents
organizations and
frequently
charged high
overlook
price It was in late
disrupters
1970s when new
Disrupters
challengers introduced personal copiers It offered
often build business models that are different
an affordable solution to individuals and small
from those of the incumbents Apple iPhone
firms It had thus created new market In this
dominated the market not because of disruptive
case new challenger was an entrant with
innovation but because of sustainable
disruptive innovation strategy in place The terms
innovation Apple came as a market disrupter
disruptive innovation and sustainable innovation
with iPhone which created a new market for
are used interchangeably But they do not have
internet access and eventually was able to
same meaning
challenge laptops as mainstream users device of
choice for going online At present there is no
Making changes in the existing product line by
such market segment that could be under
introducing new and improved versions of the
estimated The purchasing power of consumers
same product or by adding new products to the
is increasing consumer lifestyle has changed
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