Chapter 7.3 (Disruption)

Disruption happens when an existing industry faces a challenger that offers far greater value to the customer in a way that existing firms cannot compete with directly.

Disruption is caused by symmetric competitive threats.

A disruptive challenger is selling a different version of the same product.

Disruption can be defined as any type of innovation.

Digital technologies have created opportunities for new challengers to take on long-profitable businesses that have failed to adapt.

In the digital age, businesses are more likely to advertise in newspapers rather than using online ads.

Disruption is on the rise in the digital age because of the lack of opportunities for new challengers.

True or false: Newspapers were unable to compete with Airbnb because Airbnb provides a more local and personalized experience, in addition to better price and more choice.

True or false: According to Joseph Schumpeter, industry disruption is an inherent pattern in capitalism.

True or false: Clayton Christensen's theory of disruption states that a disruptor always starts out selling to buyers in a new market.

True or false: According to Clayton Christensen's theory, a new market disruptor offers an innovative product that is superior in terms of performance and features.

True or false: One critique of Clayton Christensen's theory is that it is based on examples of buying decisions made by consumers, not companies.

True or false: According to the author's theory, many disruptors nowadays introduce new fundamental technology to the market.

True or false: According to the author's theory, a business model consists of a value proposition and a value network.

True or false: Challenger's value proposition can depend on unique data assets and capabilities?

True or false: IP assets can include intellectual property like patents and unique technologies?

True or false: Physical assets can include factories, equipment, and stores?

True or false: Challenger may have unique processes and organizational skills that are essential to the value it delivers?

True or false: Data assets are not important for a challenger's value proposition?

True or false: Challenger's value proposition does not depend on unique data assets?

True or false: IP assets do not include patents and unique technologies?

True or false: Physical assets do not include factories, equipment, and stores?

True or false: Challenger does not have unique processes and organizational skills that are essential to the value it delivers?

True or false: To disrupt an existing business, a challenger must possess a significant differential on each side of the business model.

True or false: Business disruption only happens when both a difference in value proposition and a difference in value network are present.

True or false: Without a difference in value proposition, there is no disruption, only traditional competition.

True or false: Without a difference in value network, an incumbent would be able to imitate the success of an innovative new challenger.

True or false: Digital business models can offer the same product at a lower price, stimulating more customer trials.

True or false: Digital business models often disrupt by removing friction from the sales process, making decision-making and purchasing simpler.

True or false: Value network differentials can be found in components such as customers, channels, partners, networks, etc.