Business management Essay Example | Topics and Well Written Essays - 4000 words - 3

Business management - Essay Example This occurs until the time when their disruptive innovation manages to invade the previous value network. At that period, the conventional firm in that network can at best only defend the market share attack by employing a me-too entrance with the reward being survival and not thriving. The theory of disruptive innovation was initially invented by Harvard professor Clayton M. Christensen during his research on the disk-drive business. It was later made popular by his book The Innovator’s Dilemma, which was published in 1997. This theory gives explanation on the event by which an innovation changes an existing and established sector or market by initiating convenience, accessibility, simplicity and affordability in areas where complication as well as high cost are evident (Christensen and Anthony 2004, 46). Initially, a disruptive innovation is created in a niche market which may seem unattractive or insignificant to business incumbents. Eventually, the new product or thought totally redefines the business. Initially, disruptive innovations occurred as technologically straightforward. They comprised of off the shelf elements assembled together in a product design that was mainly simpler compared to the previous approach (Christensen 2006, 40). They provided l ess of whatever the consumers and consumers in the already established markets needed. This meant that they could not be effectively employed in those markets. They gave out a different package of qualities that were only valued in the emerging markets far from, and significant to the established market. Christensen asserts that a disruptive innovation has the ability to hurt well managed and successful companies (Hwang and Christensen 2008, 1330). He argues that this can occur regardless of the company being responsive to its customers, or having exceptional research and development. These companies have a tendency to ignore those markets that are more susceptible to disruptive innovations. This is