What is a low-end disruption?

“Low-end disruption” occurs when the rate at which products improve exceeds the rate at which customers can adopt the new performance. Therefore, at some point the performance of the product overshoots the needs of certain customer segments.

What is low-end innovation?

Low-end innovations, defined as new products or services that expand a market by addressing consumers with a low willingness or ability to pay, have a dual purpose – they can be a prerequisite for firm survival and growth and a major driver of societal change.

What is low-end disruptive innovation examples?

Because there’s no profitability incentive to fight for the bottom of the market, a low-end disruption causes incumbent companies to focus their efforts on more profitable areas. An example of a low-end disruption is the rise of retail medical clinics in the healthcare space.

What is the difference between low-end and high end disruptive innovations?

This distinction is the key insight to understanding high-end disruption: Whereas low-end disruptors enter the market with a low-performing, low-price product and then work to improve performance, high-end disruptors enter the market with a high-performing, high-price product and then work to improve price.

What causes disruptive innovation?

Disruptive innovation defined Disruptive innovation refers to a concept, product, or a service that either disrupts an existing market or creates a completely new market segment. In practice, disruption happens when traditional value drivers in an existing market are significantly changed.

What is disruptive innovation in education?

Second, disruptive innovation is the mechanism for bringing about a personalized education system. The process of disruptive innovation allows them to take root outside of the traditional system and then improve over time until their value is universally acknowledged and widely adopted.

What is meant by disruptive innovation?

Disruptive innovation is the introduction of a product or service into an established industry that performs better and, generally, at a lower cost than existing offerings, thereby displacing the market leaders in that particular market space and transforming the industry.

What is disruptive innovation examples?

Disruptive innovation refers to innovations and technologies that make expensive or sophisticated products and services accessible and more affordable to a broader market. Amazon, launched as an online bookstore in the mid-1990s, is an example of disruptive innovation.

Is Tesla a disruptive innovation?

As Bartman worked through the questions, it became clear that Tesla is not a disrupter. It’s a classic “sustaining innovation”—a product that, according to Christensen’s definition, offers incrementally better performance at a higher price.

What is disruptive innovation example?

True Disruptive Innovation Examples

• Steel mini mills. “Mini mills” dramatically disrupted the steel industry once dominated by the great integrated steel companies of the 20th century.
• Video streaming.
• Radios.
• Online encyclopedia and reference.
• Smartphones.
• Personal computers.
• Retail medical clinics.
• Photography.

Is Spotify a disruptive innovation?

Because Spotify pays record labels only a small royalty by audio stream, it has aligned its business model around this low pricing. It’s business model innovation. Though Spotify did not pioneer this disruptive innovation, it is the first time mainstream media is exposing the American public to it.

What does disruptive innovation mean?