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Technology as a strategic factor which helps in the development or dismissal of subsequent firms - Essay Example

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Technology as a strategic factor which helps in the development or dismissal of subsequent firms

The concept of disruptive innovation as rendered by Clayton M. Christensen is found to be dealt mainly on two aspects. He observed the emergence of disruptive technologies mainly along two ends-disruptions based along low ends and that emerging out from development of new markets. The first set of disruptive technologies is found to produce products which are much cheaper than those produced out of traditional technologies. Further adding to the cheapness of the product the usage of the same is also found to catch a simplistic note which is a little complex than such produced out of existing technologies. Hence products produced out of such disruptive technologies are generally found to gain market in lower economy areas.

The second set of disruptive innovations is noted as such as would focus on the creation of new markets for the products which fail to be consumed by the existing market. Further such disruptive innovation helps to create a market for such people who fail to get used to the usage patterns of existing products. Thus this type of innovation helps to create a niche market for the products which were previously regarded as inconsumable. The reason for disruptive innovation practices for producing products at lower ends of the market as bringing in a holocaust for the manufacturing firm can be analysed as follows. It is found firstly that firms tend to invest more on products which are produced through the means of efficient technology and thus are expected to fetch higher returns for the company when being sold out in the market in large scales for their increasing demand. However it must be considered that the pace of emergence of new technology is much faster than that of the growth of market demands for the products. Thus secondly when the products produced out of disruptive innovation practices are rendered in the market in a spontaneous fashion the demand for such also starts rising. To this end it is found that the concern is not in a position to make ...Show more


The study of the causes for the failure of many successful firms is found to be increasingly related with the technological concept in use with such concern. Technology as a strategic factor which helps in the development or dismissal of subsequent firms can be studied mainly under two heads. …
Author : mkuhlman
Technology as a strategic factor which helps in the development or dismissal of subsequent firms essay example
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