Lecture 6:Disruptive Innovation

What is the core dilemma associated with disruptive innovation for established companies, as explained in the lecture?

• The same strategies that led to past success now contribute to their downfall

• Inability to raise capital for new projects

• Hiring unqualified employees

• Excessive marketing efforts

Which company is most famously associated with the term 'disruptive innovation'?

• Apple

• Microsoft

• Kodak

• Nokia

According to Christensen, what is the primary characteristic of disruptive innovation?

• It initially targets underserved or low-end markets and then moves upmarket

• It is introduced by large, established companies

• It always leads to immediate financial success

• It is a high-cost, high-performance product from the start

What critical mistake did Kodak make in relation to digital cameras?

• It didn't invest in digital photography

• It stuck with film photography despite pioneering digital technology

• It didn't hire the right engineers

• It had no patent protection for its innovations

What strategy is most likely to lead to the demise of an established company when faced with disruptive innovation?

• Accelerating innovation in its core products

• Ignoring low-end market entrants and focusing on high-end customers

• Investing in new technologies

• Diversifying its business model

What does Christensen's 'S-curve' represent in the context of innovation?

• Market demand over time

• The performance of a technology as it improves over time

• The financial growth of a startup

• The adoption of new business models

How does the concept of 'affordable loss' apply to disruptive innovation?

• It ensures maximum profitability

• It limits the initial risk for new market entrants

• It guarantees long-term success

• It increases the focus on premium markets

Which of the following is not a typical response by incumbents to a disruptive threat, as discussed in the lecture?

• Ignoring the new entrant

• Lowering product quality to compete

• Doubling down on current technologies

• Acquiring the new entrant

In what way did the rise of cloud computing disrupt traditional IT infrastructure providers?

• It reduced the need for software development

• It offered flexible, scalable IT services at lower costs

• It increased the demand for physical servers

• It minimized the role of software companies

What is one of the significant impacts of disruption on industry leaders?

• They become overly focused on their existing customer base, neglecting new opportunities

• They increase their R&D investments successfully

• They maintain market leadership by improving their core product

• They move into entirely new industries to avoid disruption