Marketing Essay

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1. What is performance trajectory? Describe the following three concepts: “performance trajectory of sustaining technologies”, “performance trajectory of disruptive technologies” and “performance trajectory required by mainstream market”. Explain how they are related with one another. Performance trajectory is the rate at which performance of a product has improved and is expected to improve, over time. Every industry has a critical performance trajectory. Performance trajectory of sustaining technologies: This means to maintain the rate of improvement by always giving customer something better in the products. Performance trajectory of disruptive technologies: This sector introduces different package from what customers are used to and as a result the product performance tends to be much worse. The customers in this sector are not keen to use disruptive products since they do not fully understand the application. Disruptive technology offers a very different attributes than what customers require and hence they often perform poorly in one or the other areas. Performance trajectory required by mainstream market: Mainstream market requires that the newer technology performs as per their requirement or have the attributes that the market is familiar with and make the customer willing to use the product. These three concepts are interrelated but we never compare the performance. Instead, we compare the performance improvement and see how they make the customers satisfied. 2. Why do market leaders fail to recognize and respond to disruptive technologies? In order to capitalize the emerging markets for the disruptive technologies, managers have two options either to go with the low profit generating markets that the disruptive technologies would initially serve or to go upmarket with the sustainable technology which would generate high margin. This

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