Question

Why do disruptive technologies often cause large firms to fail?

a) Inability to adapt
b) Lack of financial resources
c) Regulatory challenges
d) Poor leadership

Answer 1

Disruptive technologies often cause large firms to fail due to their inability to adapt, lack of financial resources, regulatory challenges, and poor leadership.

Step-by-step explanation:

Disruptive technologies often cause large firms to fail for several reasons:

1. Inability to adapt: Large firms may struggle to adapt to new technologies due to their size, hierarchical structures, and established processes. They may be slow to recognize the potential of disruptive technologies or may be resistant to change.
2. Lack of financial resources: Implementing and integrating disruptive technologies can be costly. Large firms that are already heavily invested in existing technologies may lack the financial resources to invest in and transition to disruptive technologies.
3. Regulatory challenges: Disruptive technologies may operate in unregulated or loosely regulated spaces, presenting challenges for large firms that are accustomed to operating within established regulatory frameworks.
4. Poor leadership: In some cases, the failure of large firms to adapt to disruptive technologies can be attributed to poor leadership. Leaders who are resistant to change or fail to recognize the potential of new technologies may hinder the firm's ability to navigate the disruptive landscape.