Organizational Behavior Session 2

The second session started with a review of the previous class, with regard to the Kodak case study where Fuji was a discruptive innovation where they are offering the same products with a lower quality but also cheaper price of film. New market innovation are canon, nikon and sony who are selling digital cameras. Generally the new entrance wins if we focus on new market innovations. If one wants to compete on the sustaining innovation, the incumbents have more resoures, capital, cutomer base and technological advancements, therefore it is not giving one much chance to win. But as Fuji enters the market from below to focus on over-served and non-served customers become succesful, the incumbents do not see this disruption as a theat as they are only losing the least profitable customers. This means the average customer portfolio is going to increase. With the incompetency of the management to detect threats, they often recognize this too late before they start to do something about it. Then, the professor asked us to come up with another product example and explained it back to him. I took the example for airlines, with the help of Roman, we decided to use classes to compare—first class, business class, premium economy and economy. For obvious reasons, the economy flights are the disruptive ones. With ryan air and easy jet as good examples of disruptors. Instead of disregarding the low price of their economy seats, Swiss air could have a competitive advantage for their flights and keep thier competition on their feet. Swiss air would have advantages such as a bigger space, better experience, airport locations and direct flights. Before the end of the class, we had an interesting discussion about artificial intelligence after watching a video of creative destruction. Creative destruction examples can be the accessibility of ice, the shift of car manufacturing to mostly machines, autopilot driving, etc.