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Which of the following statements is not true of a disruptive innovation?

A) It invades the market from the bottom up, by first capturing the low end.
B) It initially performs better than the existing technology.
C) It involves leveraging existing technologies in new markets.
D) It begins as a low-cost solution to a new problem.

1 Answer

4 votes

Final Answer:

The statement "It involves leveraging existing technologies in new markets." is not true. Therefore, the correct option is C) It involves leveraging existing technologies in new markets.

Step-by-step explanation:

Disruptive innovations typically challenge existing norms by introducing new products or services that may not initially outperform existing technologies (contrary to statement B). They often start by targeting underserved or low-end segments of the market (statement A), aiming to provide a more accessible or affordable solution.

Additionally, disruptive innovations don't always emerge as low-cost solutions to new problems (statement D). However, what sets them apart is their capacity to leverage existing technologies in innovative ways to enter new markets or address previously unmet needs (statement C). This leveraging might involve repurposing existing technologies or adapting them to serve different customer segments or markets, leading to a disruptive impact on the established market landscape.

Disruptive innovations, while not always instantly superior, eventually evolve to challenge and sometimes replace established technologies or approaches, fundamentally altering industry paradigms and consumer behaviors. Therefore, the correct option is C) It involves leveraging existing technologies in new markets.

User Barney Szabolcs
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