Innovators Dilemma Essay

510 WordsOct 4, 20153 Pages
Reaction Paper 61610387 ENTR Section B The reading deals with a concept called the Innovators dilemma, a paradox of sorts which goes as follows: Successful companies that dominate their industries tend to fail in the face of disruptive innovation. The reading states that innovations are of two types as follows: 1. Sustaining Innovations Sustaining innovations believe in the theory that “The customer is always right”. Sustaining Innovation is practiced by improving upon an existing product based on feedback received from customers. As mentioned in the reading, within each hard drive size, the larger companies (generally leaders of the industry) brought about incremental updates to the hard drives as time passed by. This process is similar to how mobile phone manufacturers bump up the specs of their cellphones when they launch an upgraded model each year. Most of them don’t do anything significantly different, but they provide more value to their existing customers. 2. Disruptive Innovations In most cases, a disruptive innovation follows exactly the opposite method. Many a times, a disruptive innovation seems like it offers less value as compared to existing market offerings. But the USP of a disruptive innovation is not specifications based. More times than not, a disruptive innovation doesn’t even compete with the existing product. Instead, it aims at creating a whole new market that will potential bloom in the near future. It capitalises on first mover advantage. In the article, each size reduction in hard drive is termed as a disruptive innovation because it offered less in terms of speed and storage, but created whole new markets in mini computers, desktops, notebooks and so on. This concept is similar to what Uber has done as a cab aggregator. If you were told what Uber does before Uber went big, it would appear as though it wasn’t a

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