As a start-up company, DigiWrist entered the low end of the highly competitive smartwatch industry with its low-cost smartwatches. Initially, the company was able to sell its inferior technology due to its low prices. Over the years, however, its rate of technology improvements increased above the industry standards. This helped the company to create a strong strategic position for its smartwatches in the high-end segment and claim a premium price. Which of the following types of innovation does this scenario best illustrate?
A) radical innovation
B) incremental innovation
C) architectural innovation
D) disruptive innovation

Question

Quizplus · Accepted Answer

The scenario best illustrates a disruptive innovation. The dynamic process of disruptive innovation begins when a firm, frequently a start-up, introduces a new product based on a new technology to meet existing customer needs. It invades an existing market from the bottom up.

As a Start-Up Company, DigiWrist Entered the Low End of the Highly