BUSS5020_2018S2_Essay_template.docx - ID 480486251...

ID: 480486251
Introduction
The essay mainly discusses about disruptive innovation under theory of Clayton M.
Christensen, who is the professor at Harvard Business School. The topic will raise up few
famous business cases to support the theory, such as Uber, Netflix and Apple. According to
Christensen, the definition of disruptive innovation is the progress where a smaller company
with simpler application and lesser resources is able to move up the market and beat the
existing incumbent business (Christensen, Raynor, & McDonald, 2015). Disrupters initially
take time to become more and more attractive to the mainstream market, as they make it
more accessible and affordable to the customers’ perspective.
Summary
According to Christensen article, he argued that Uber is not disruptive innovation. It
has claimed that Uber is not considered as disruptive innovation although its business has
changed the taxi business in the USA and some other countries around the worlds. There are
two main reasons which can be well explained why Uber is not qualify to be utterly
disruptive due to its business strategy and financial status.
Disruptive innovations arise in low-end or new market foothold. Disruptive
innovation merely happens in two kinds of markets while the firms disregard. When the
company tends to neglect the low-end customers and only purvey their main customers with
permanent good quality products and services, which is the opportunity that allow the
occurrence of disruptive innovation to focus on the other group of customers that was
overlooked by the incumbents with providing them satisfied products. On the other scenario,
disruptive innovation generates a new market that is none existed, as they twist the non-
consumers to become their consumers.
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ID: 480486251
Disruptive innovations do not catch on with mainstream customers until quality meets
their standards. Meaning, normally customers will not easily change the products for the
lower price offering. However, they are willing to wait for the quality upgrading then started