Management
Disruptive Innovation－ An inevitable trend for electronics companies in the future
It seems that iphone6 is the most popular sustaining innovation now, which people are willing to queue up with their tents and seats outside Apple store to buy. However, if people were as crazy as nowadays with Apple’s products instead of Nokia 10 year ago, I think nobody would understand them. This example illustrates that a period of time changed the position of Apple, this company was changing from disruptive innovation to sustaining innovation with the
Nokia out of the way. Why Nokia phone failed when compared with iPhone because its managers did not realize and adapt to disruptive technologies in the external environment. In other word, electronics companies cannot survive unless they keep their eyes on disruptive innovation. Why disruptive innovation is the future of electronics companies? As content from the last class said, every product has its life cycle (Table A&B). In the electronic information age, life cycle of electronic product is always shorter than we expected. Besides avoiding the threat from short life cycle, launching a disruptive product can actually bring another advantage——a new market, which means new profit. The first one in new market always gets the largest market share and the largest profit margin. Apple, again, is a good example when we consider it as the first company launching the tablet computer——iPod. Although various companies such as Samsung and Lenovo’s in the same industry followed this revolution, my research showes that iPod have never been surpassed in recent years and have already become a big resource of revenue for Apple. Overall, disruptive innovation is a core driving force to help the electronic company move forward by both reducing threat and
increasing strength.
However, there are some barriers to launch disruption products for electronic companies.
Managers may worry about is that what if their company
It seems that iphone6 is the most popular sustaining innovation now, which people are willing to queue up with their tents and seats outside Apple store to buy. However, if people were as crazy as nowadays with Apple’s products instead of Nokia 10 year ago, I think nobody would understand them. This example illustrates that a period of time changed the position of Apple, this company was changing from disruptive innovation to sustaining innovation with the
Nokia out of the way. Why Nokia phone failed when compared with iPhone because its managers did not realize and adapt to disruptive technologies in the external environment. In other word, electronics companies cannot survive unless they keep their eyes on disruptive innovation. Why disruptive innovation is the future of electronics companies? As content from the last class said, every product has its life cycle (Table A&B). In the electronic information age, life cycle of electronic product is always shorter than we expected. Besides avoiding the threat from short life cycle, launching a disruptive product can actually bring another advantage——a new market, which means new profit. The first one in new market always gets the largest market share and the largest profit margin. Apple, again, is a good example when we consider it as the first company launching the tablet computer——iPod. Although various companies such as Samsung and Lenovo’s in the same industry followed this revolution, my research showes that iPod have never been surpassed in recent years and have already become a big resource of revenue for Apple. Overall, disruptive innovation is a core driving force to help the electronic company move forward by both reducing threat and
increasing strength.
However, there are some barriers to launch disruption products for electronic companies.
Managers may worry about is that what if their company