Disruptive innovation as marketing strategy | Authored by Dr. Jones Mathew

Dominant firms are often stumped by disruptors coming from the bottom end of the market. But they can counter this is by ‘spinning-off’ a separate firm to take on the start-ups. According to Clayton Christensen, an innovation can be called “disruptive” if it has one of two qualities: a lower end market foothold or technology which is easily accessible to the masses. Constantinos Markides in a 2006 article differentiated disruption into business model innovation, product innovation and technological innovation. The three are not the same — they have different origins, differing effects and demand dissimilar incumbent-responses. A small organisation overthrows a big one because the latter as a business strategy follows “sustaining innovation” (pleasing the high-end customer with more features and benefits while ignoring the majority who just want a low cost product).

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