disruptive

Disruptive Innovation

By Dr. Amit Bhadra, Dean-WSB

Disruptive innovation is any situation in which new entrants using different business model win over customers of previously successful incumbents. Right? Not necessarily.Disruptive innovation is a process where a smaller company successfully challenges a bigger incumbent but not by targeting the most attractive customers of the incumbent. The entrant targets less attractive foothold markets. These are of two types. i) Under served customers who have lower expectations and lower willingness to pay a high price. Like the market for small cars in the US in the 1970s. ii) Non-users of a category. Like non users of personal computers in the 1980s and non users of radio in the 1960s. These segments proved to be the major markets for desktop computers and transistor radios.Read More