Question

Which of the following of statements are true of a "disruptive innovation"? I. A factor favoring the success of disruptive innovation is that incumbent firms are slow to change. II. Disruptive innovators take advantage of incumbent firms’ excessive focus on making mostly minor improvements on existing technologies. III. Disruptive innovation has the potential to result in creative destruction.

Answer 1

Answer:

I. A factor favoring the success of disruptive innovation is that incumbent firms are slow to change.

Explanation:

In the theory of business, the disruptive innovation is defined as the innovation or technology which creates a new market and also value network and it eventually disrupts or destroys the existing market or the value market. It displaces the existing established markets and firms.

It tries to capture the market or the firms from bottom up, first capturing the low end. One of the factor that favors the success of the disruptive innovation is that the existing markets are very slow to changes.