Disruptive innovators can hurt successful and immensely profitable incumbents that tend to ignore the markets most susceptible to disruptive innovations.   Disruptive innovators offer technologically straightforward solutions consisting of off-the-shelf components put together in a product architecture that is often simpler, initially lower performing, and cheaper than established approaches. Considering disruptive technologies unprofitable, the executives at incumbents often ignored them at their own and companies’ peril.   In 1981, the old 8 inch drives used in mini computers were "vastly superior" and much more profitable to the new 5.25 inch drives used in desktop computers.  However, 8 inch drives were not affordable for the new desktop machines.  Slowly, the makers of 5.25 inch drives improved the performance of the drives and moved the 8 inch drive companies that did not invest in the 5.25 inch technology out of the market as the latter could not compete on price.  Similarly, digital cameras, when introduced in 1997 performed extremely poorly as compared to traditional film cameras.   Consequently, many traditional film companies such as Kodak ignored this market only to be bankrupted by the rise of digital cameras a decade later.
Leaders and strategists should be cautious while rejecting a technology that does not seem to be as high performing and hence not as profitable as their dominant technologies.  A technology that initially provides low performance can drastically improve over time and often exceed the performance of the dominant technology at a much lower price-point, a scenario that could potentially bankrupt the incumbents who ignored the technology at their peril. 
Which of the following exemplifies a technological disruption as described in the passage through the 8 inch and 5.25 inch disc drive example?
  • a)
    Personal computers that initially are extremely unreliable and require frequent service become so reliable that over 90% of the service people deployed to service the personal computers are let go.
  • b)
    Circuit city  - a specialty electronics retail chain was bankrupted as general purpose retailers such as Walmart and Target started carrying electronics.
  • c)
    Apple takes over the casual computing marketing previously dominated by the netbook by introducing the iPad that provides a different level of experience over the general PC experience.
  • d)
    Mini mills, such as those operated by companies such as Nucor, that initially made lowest grade steel improve their quality to the extent that they are able to compete with large steel mills on quality while beating them on price.
  • e)
    DVDs and Blue Ray discs drive out the slightly cheaper VHS tapes as the tapes are not able to match the discs in terms of quality and convenience.
Correct answer is option 'D'. Can you explain this answer?

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Answers

If you see the passage,the conclusion is mentioned in the very first statement
,for which the entire passage is written and it's an opinionated passage.
to answer the qn you need to find the conclusion bkz it's comparison kind inference qn.
both the examples you need to read and infer something related to the stanza.
the examples stanza says incomparable companies sometimes outpace the stabilized and performing companies using newer and compatible technologies.thats all.expect option D every other statement is laging at some point related to crux or doesn't compare the two companies that should be compared as the passage states or demands.

If you see the passage,the conclusion is mentioned in the very first statement ,for which the entire passage is written and it's an opinionated passage.to answer the qn you need to find the conclusion bkz it's comparison kind inference qn.both the examples you need to read and infer something related to the stanza.the examples stanza says incomparable companies sometimes outpace the stabilized and performing companies using newer and compatible technologies.thats all.expect option D every other statement is laging at some point related to crux or doesn't compare the two companies that should be compared as the passage states or demands.
If you see the passage,the conclusion is mentioned in the very first statement ,for which the entire passage is written and it's an opinionated passage.to answer the qn you need to find the conclusion bkz it's comparison kind inference qn.both the examples you need to read and infer something related to the stanza.the examples stanza says incomparable companies sometimes outpace the stabilized and performing companies using newer and compatible technologies.thats all.expect option D every other statement is laging at some point related to crux or doesn't compare the two companies that should be compared as the passage states or demands.