MAR3001 Consumer Behaviour Learning Journal #5

For the first part of today’s session, we reviewed and learned new theories based on explaining and categorizing consumer behaviors in relation to innovations and market research. The professor linked two videos in what, Harvard Business School Professor, Clayton Christensen calls a ‘disruptive innovation’. The videos explained this complex topic in such simple terms. 

A disruptive innovation is one that establishes a new market and value network, eventually displacing incumbent market-leading enterprises, products, and alliances, according to the business theory. A famous example is the steel mini mills that produced steel materials, which in turn, slowed down the large mill businesses that were dominant at the time. Therefore, in order to win back their clients, the big businesses have to be innovative and create a business model that is a separate entity from the core business.  


Moreover, the case study that we did in class today showcases a niche target market in which Veterinary Pet Insurance (VPI) dived into before large insurance companies even took notice. As Christensen described it, disruption happens when a smaller company successfully challenges "established incumbent businesses" by first providing products or services that appeal to a niche part of the market. Despite the fact that the new product or service isn't always better than the incumbent at first, the smaller firm develops its offering and eventually sells something with superior functionality at a cheaper price that appeals to a significant number of consumers. As a result, demand for the smaller company's product or service expands beyond its original specialized clients to a huge number of mainstream purchasers. 


Disruptive innovation, according to business leaders, is critical for bringing benefits to customers and society, because the disruptive innovator produces a better offering, often at a lower price, while also creating new value and spurring additional improvements beyond the product or service's early iterations (Pratt, 2020).





Reference: Pratt, M. K. (2020, November). Disruptive Innovation. Retrieved from TechTarget: https://searchcio.techtarget.com/definition/disruptive-innovation

 

Comments

Post a Comment

Popular posts from this blog

World Politics Session 7 and Session 8

Today, we were introduced to a measurement called Worldwide Governance Indicators, which provides aggregate and individual governance indicators for over 200 countries and territories on six dimensions of governance from 1996 to 2020. The dimensions are: Voice and Accountability, Political Stability and Absence of Violence/Terrorism, Government Effectiveness, Regulatory Quality, Rule of Law, and Control of Corruption. These composite indicators are based on the responses of a significant number of business, citizen, and expert survey respondents from both developed and developing countries. They're based on more than 30 different data sources including survey institutions, think tanks, non-governmental organisations, international organisations, and private sector companies.  Then, after the break, we were introduced to the institutionalized international systems and how the growing number of unresolved policy issues require a new framework that helps cooperation without over-centr...
Read more

MAN2002 Family Business Management Session #9 and #10

In today’s last sessions, we started off with the presentations and each respective groups received feedbacks and were asked questions afterwards.  Later on, we were introduced to the roles and interests in a family business.  The roles of the business  indicate  the role of the family member or non-family member that works for the company. The description of the roles dictates their duties and  responsibilities   that contributes to the said company.  And lastly, the primary interest corresponds with  their respective roles and their reason for working within the company. Then, we were given time to  reflect back on the SAGE case study and applied the relevant information of the family members and their roles into the table below.    Name   Role   Category   Describe   Role   Primary  Interest   Thomas   Family  owners   who  are  exployees   Creator , CEO   To ...
Read more

MAR3001 Consumer Behaviour Learning Journal #4

As per usual, the class started with a review of the previous class learnings of theories, models and the case study. After much discussion of the previous case study, we went forward with a new case study of Vodafone in Egypt. It was interesting to see and analyse how Vodafone penetrated into Egypt through mergers and acquisitions as well as through venture capitalist. We concluded through a comparison with the UK that Egypt had a fairly different cultural dimension.     - Huge power distance considering the state of emergency he had announced and the instability that it has caused to Egypt.   - Collectivistic society, based on the case study, was shown through the demonstration made by the civilians in order to overthrow the government.    - Feminine society:  In Feminine countries the focus is on “working in order to live”, managers strive for consensus, people value equality, solidarity and quality in their working lives. Conflicts are resolved by compr...
Read more