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Explain each base on the picture.  purpose of DISRUPTIVE INNOVATION how it works netflix's disruptive innovation

Explain each base on the picture.  purpose of DISRUPTIVE INNOVATION how it works netflix's disruptive innovation

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Explain each base on the picture. 

  • purpose of DISRUPTIVE INNOVATION
  • how it works
  • netflix's disruptive innovation
DISRUPTIVE INNOVATION PURPOSE: The term "disruptive innovation" was coined by Harvard professor Clayton M. Christensen based on his research on the disk drive industry and later popularized by his 1997 book The Innovator's Dilemma." Disruptive innovation focuses on making something different that creates value for customers and for the company. It focuses on making complex products simpler or making expensive products more affordable. Some examples are Uber and Lyft with the taxi industry and Airbnb with the hotel industry. Not only will successful disruptive innovators steal market share from the already established players in their respective industry, the innovation will often create new demand and attract more consumers than in the original industry. On the other hand, the innovator faces a dilemma: Will investing in the disruptive innovation now hurt its current business in the longer term? HOW IT WORKS: 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, eventually displacing established competitors." It can be any disruptive strategy, process, product, or service. For example, is there a market where a current product or service seems too expensive or complicated to use, or is there a growing need that is not being met? After identifying the problem, it requires brainstorming and out-of- NETFLIX'S DISRUPTIVE INNOVATION Netflix is a recent example of a disruptive innovator. The movie rental industry previously dominated by Blockbuster has largely been replaced by Netflix's movie streaming platform, and the company has successfully changed the home movie rental landscape forever. This innovation not only drove Blockbuster out of business, it has also attracted many more customers than Blockbuster could ever have had due to the simplicity, practicality, and superior business model achieved through Netflix's platform." the-box thinking. In a large company, it may be helpful to allow employees with an idea to form a microenterprise within the company where they are given a chance to see if it will succeed." new way to provide a product or service often
Transcribed Image Text:DISRUPTIVE INNOVATION PURPOSE: The term "disruptive innovation" was coined by Harvard professor Clayton M. Christensen based on his research on the disk drive industry and later popularized by his 1997 book The Innovator's Dilemma." Disruptive innovation focuses on making something different that creates value for customers and for the company. It focuses on making complex products simpler or making expensive products more affordable. Some examples are Uber and Lyft with the taxi industry and Airbnb with the hotel industry. Not only will successful disruptive innovators steal market share from the already established players in their respective industry, the innovation will often create new demand and attract more consumers than in the original industry. On the other hand, the innovator faces a dilemma: Will investing in the disruptive innovation now hurt its current business in the longer term? HOW IT WORKS: 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, eventually displacing established competitors." It can be any disruptive strategy, process, product, or service. For example, is there a market where a current product or service seems too expensive or complicated to use, or is there a growing need that is not being met? After identifying the problem, it requires brainstorming and out-of- NETFLIX'S DISRUPTIVE INNOVATION Netflix is a recent example of a disruptive innovator. The movie rental industry previously dominated by Blockbuster has largely been replaced by Netflix's movie streaming platform, and the company has successfully changed the home movie rental landscape forever. This innovation not only drove Blockbuster out of business, it has also attracted many more customers than Blockbuster could ever have had due to the simplicity, practicality, and superior business model achieved through Netflix's platform." the-box thinking. In a large company, it may be helpful to allow employees with an idea to form a microenterprise within the company where they are given a chance to see if it will succeed." new way to provide a product or service often
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