Week 5

Question 1

According to Clayton Christensen’s theory, which BEST describes disruptive innovation?

Answer 1

A process whereby a smaller company with fewer resources successfully challenges established incumbents

Question 2

What is the relationship between sustaining innovations and disruptive innovations?

Answer 2

Sustaining innovations improve products for existing customers while disruptive innovations initially appeal to overlooked segments

Question 3

According to the article, why do incumbents often fail to respond effectively to disruptive threats?

Answer 3

Their established resource allocation processes prioritize sustaining innovations with better margins

Question 4

What drives disruptive innovations to eventually move upmarket and challenge incumbents?

Answer 4

Price-based competition among entrants after incumbents cede the low-end market

Question 5

What does the theory of disruptive innovation predict when an entrant tackles incumbent competitors head-on with better products or services?

Answer 5

The incumbent will accelerate innovation or acquire the entrant, making success difficult for standalone entrants