Week 6

Question 1

What is the most critical factor in determining whether a disrupter will succeed against an incumbent?

Answer 1

The extendable core of the disrupter’s business model

Question 2

Which barrier to disruption is typically the MOST difficult for a disrupter to overcome?

Answer 2

The ecosystem barrier

Question 3

What is the PRIMARY difference between disruption and simple price competition?

Answer 3

Disruption involves maintaining lower prices while moving upmarket

Question 4

How should managers respond when parts of their business are vulnerable to disruption?

Answer 4

Focus resources on segments with sustainable advantages while developing disruptions of their own

Question 5

What creates the MOST formidable barrier against disruption for an incumbent business?

Answer 5

Providing services that would require the disrupter to adopt the incumbent’s cost structure