Podcast
Questions and Answers
Which of the following best defines industry disruption?
Which of the following best defines industry disruption?
- The process of optimizing supply chain logistics to reduce costs.
- A temporary slowdown in an industry's growth due to seasonal market changes.
- Minor adjustments to existing business operations that improve efficiency.
- Significant changes that challenge existing business models and operations, often driven by new technologies. (correct)
What is a key element that drives industry disruption?
What is a key element that drives industry disruption?
- Discovering 'what people want' and delivering it in novel ways. (correct)
- Maintaining the status quo in established markets.
- Strict adherence to traditional business strategies.
- Ignoring consumer preferences to focus on internal efficiencies.
Which of the following is the correct order of the stages of industry disruption?
Which of the following is the correct order of the stages of industry disruption?
- Rapid and Linear Evolution, Disruption of Incumbent, Industry Reinvention, Appealing Convergence.
- Appealing Convergence, Industry Reinvention, Disruption of Incumbent, Rapid and Linear Evolution.
- Disruption of Incumbent, Rapid and Linear Evolution, Appealing Convergence, Industry Reinvention. (correct)
- Industry Reinvention, Appealing Convergence, Rapid and Linear Evolution, Disruption of Incumbent.
Which activity characterizes the 'Disruption of Incumbent' stage in industry disruption?
Which activity characterizes the 'Disruption of Incumbent' stage in industry disruption?
What is the primary focus of a disruptor during the 'Rapid and Linear Evolution' stage?
What is the primary focus of a disruptor during the 'Rapid and Linear Evolution' stage?
During the 'Appealing Convergence' stage, how do disruptors typically evolve their strategy?
During the 'Appealing Convergence' stage, how do disruptors typically evolve their strategy?
In the 'Industry Reinvention' stage, what typically happens to the market landscape?
In the 'Industry Reinvention' stage, what typically happens to the market landscape?
What does 'scalability' refer to as a key characteristic of industry disruption?
What does 'scalability' refer to as a key characteristic of industry disruption?
Which of the following is an example of how adaptability aids industry disruption?
Which of the following is an example of how adaptability aids industry disruption?
How is 'disruptive innovation' best characterized?
How is 'disruptive innovation' best characterized?
Which scenario exemplifies 'competitive disruption'?
Which scenario exemplifies 'competitive disruption'?
What leads to 'market disruption'?
What leads to 'market disruption'?
Which of the following statements best describes 'sustaining innovation'?
Which of the following statements best describes 'sustaining innovation'?
Which type of innovation is typically described as 'bottom-up'?
Which type of innovation is typically described as 'bottom-up'?
Which type of innovation is considered a 'lateral' move, often involving matching or outperforming competitors?
Which type of innovation is considered a 'lateral' move, often involving matching or outperforming competitors?
Which type of innovation is typically 'top-down' and driven by external forces?
Which type of innovation is typically 'top-down' and driven by external forces?
A fintech startup in India introduces an AI-driven savings app for daily wage workers, later partnering with digital wallets. Which type of innovation does this exemplify?
A fintech startup in India introduces an AI-driven savings app for daily wage workers, later partnering with digital wallets. Which type of innovation does this exemplify?
BYJU'S incorporates live doubt-solving sessions into its subscription after a new entrant gains traction with this feature. This is an example of:
BYJU'S incorporates live doubt-solving sessions into its subscription after a new entrant gains traction with this feature. This is an example of:
The Indian government mandates electronic health record systems in all hospitals within a year. Which type of industry disruption does this represent?
The Indian government mandates electronic health record systems in all hospitals within a year. Which type of industry disruption does this represent?
A major retailer launches a smart cart system that speeds up checkout. What type of innovation does this initiative represent?
A major retailer launches a smart cart system that speeds up checkout. What type of innovation does this initiative represent?
Due to rising fuel costs and climate concerns, urban mobility policies encourage EV adoption. What type of industry disruption is this?
Due to rising fuel costs and climate concerns, urban mobility policies encourage EV adoption. What type of industry disruption is this?
A fitness app introduces personalized reminders and water intake tracking for subscribers. This is an example of:
A fitness app introduces personalized reminders and water intake tracking for subscribers. This is an example of:
A popular food delivery app introduces calorie tracking. Which type of innovation does this exemplify?
A popular food delivery app introduces calorie tracking. Which type of innovation does this exemplify?
A fast-fashion brand lowers prices and adds eco-friendly packaging after a new sustainable label goes viral. This exemplifies:
A fast-fashion brand lowers prices and adds eco-friendly packaging after a new sustainable label goes viral. This exemplifies:
A streaming platform adds offline viewing and subtitle customization for their viewers. This is an example of what type of innovation?
A streaming platform adds offline viewing and subtitle customization for their viewers. This is an example of what type of innovation?
Flashcards
Industry Disruption
Industry Disruption
Significant changes challenging existing business models, driven by new technologies or strategies.
Disruption of Incumbent
Disruption of Incumbent
The initial stage where a new company with a novel product enters the market.
Rapid & Linear Evolution
Rapid & Linear Evolution
The stage where the disruptor improves its offering and gains wider customer reach.
Appealing Convergence
Appealing Convergence
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Industry Reinvention
Industry Reinvention
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Innovation
Innovation
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Scalability
Scalability
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Adaptability
Adaptability
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Disruptive Innovation
Disruptive Innovation
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Competitive Disruption
Competitive Disruption
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Market Disruption
Market Disruption
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Sustaining Innovation
Sustaining Innovation
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Shaking the Foundation
Shaking the Foundation
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Niche Market
Niche Market
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Study Notes
- Industry & Economic Analysis involves understanding industry disruption
Industry Disruption Defined
- It signifies considerable shifts that challenge existing business models, driven by new technologies or strategies
- It transforms established industry norms, challenged by disruptors, revolutionizing consumer experiences.
- It leads to shifts in the industry landscape with the emergence of new players and the decline of existing ones
- Key to disruption is discovering what people want, often due to technological advancements and changing consumer preferences
Stages of Industry Disruption
- Disruption of Incumbent: A new disruptor enters with a novel offering
- Rapid and Linear Evolution: The disruptor improves and expands its customer base
- Appealing Convergence: The disruptor's offerings attract a wider customer range
- Industry Reinvention: The industry transforms with new products, services, and business models; the cycle may repeat with new disruptors
Stage 1: Disruption of Incumbent
- A new player, the "disruptor", enters the market with a novel product or service
- Focuses on a niche market incumbents are not paying attention to
- Innovation challenges the status quo, forcing incumbents to re-evaluate their strategies
Stage 2: Rapid & Linear Evolution
- The disruptor improves its offering and expands its reach
- Product or service becomes more appealing with improved features and performance
- Incumbents respond by trying to match disruptor's offerings but often struggle to adapt
Stage 3: Appealing Convergence
- Disruptor's offerings become more attractive to a wider customer range
- The disruptor competes directly for market share, challenging incumbent dominance
- The incumbent's market share and profitability is affected, leading to a shift in industry leadership
Stage 4: Industry Reinvention
- The industry landscape is transformed with new entrants capitalizing on innovations
- The industry experiences complete change with new models, technologies and customer expectations
- The original disruptor may evolve into a market leader, or be replaced by new innovators
Key Characteristics of Industry Disruption
- Innovation: Introduces novel ideas, products, or services that alter market dynamics, like Airbnb
- Scalability: Leverages technology to expand quickly, like Uber
- Adaptability: Responds swiftly to changing expectations, like Netflix transitioning to streaming
Types of Industry Disruption
- Disruptive Innovation
- Competitive Disruption
- Market Disruption
- Sustaining Innovation
Disruptive Innovation
- A new product/service that starts small (niche market), improves, and disrupts the entire industry/market
- Caters to an underserved/overlooked/new segment and slowly moves to mainstream consumers
Competitive Disruption
- Occurs when firms react to competitors by modifying offerings, adding features, cutting prices, etc
- It is a reaction to the success/innovation of a rival, aimed at existing customers
Market Disruption
- Occurs when shifts in preferences, regulations, or events force industries to change
- Leads to a shift in the market, pushing firms to adapt
Sustaining Innovation
- Improvements made to existing products/services to better serve current customers
- The firm/organization makes the improvements, focusing on the existing customer base to improve efficiency
Key Takeaways Summarized
- Disruptive Innovation: Bottom-up, moving from niche markets to the mainstream
- Competitive Disruption: Lateral, competitors match/outperform in the same market segment
- Market Disruption: Top-down, external forces reshape the whole market
- Sustaining Innovation: Focuses on improving current offerings
Examples of Industry Disruption
- Fintech startup in India: AI-driven savings app for daily wage workers and farmers (Disruptive Innovation)
- Vidya Roots and BYJU’S: Introduction of live doubt-solving sessions as a subscription feature (Competitive Disruption)
- Indian government mandates health data digitization (Market Disruption)
- Major retailer launches a smart cart system (Sustaining Innovation)
- Urban mobility policies change due to fuel costs and climate concerns, encouraging EV adoption (Market Disruption)
- Fitness app introduces personalized reminders and water intake tracking (Sustaining Innovation)
- Food delivery app introduces calorie tracking feature (Sustaining innovation)
- Fast fashion brand lowers prices and adds eco-friendly packaging (Competitive Disruption)
- Streaming platform adds offline viewing and subtitle customization (Sustaining Innovation)
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