The Theory of Disruptive Innovation is useful to forecast the trajectories of related innovations. a) True b) False
Question
The Theory of Disruptive Innovation is useful to forecast the trajectories of related innovations.
a) True
b) False
Solution
a) True
The Theory of Disruptive Innovation, proposed by Clayton M. Christensen, suggests that a smaller company with fewer resources can successfully challenge established incumbent businesses by targeting segments of the market that have been neglected by the incumbents, typically because it is not profitable at the outset. As the smaller company gains a foothold in this under-served market, it can improve its product or service, encroach on the incumbent's market share, and eventually disrupt the incumbent's dominance.
This theory can be useful to forecast the trajectories of related innovations because it provides a framework for understanding how innovations can gain traction in a market and eventually disrupt established players. It can help predict which innovations have the potential to be disruptive and how incumbents might respond. However, it's important to note that not all innovations are disruptive, even if they are novel or improve upon existing products or services.
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