Futura Inc.introduced an automobile that could run completely on electricity for longer periods of time than any other electronic or hybrid automobile.Also,this vehicle was less expensive than the vehicles of competitors.On the downside,it required more repairs than the competition's automobiles.However,the technology of the Futura vehicle improved rapidly,thereby improving its repair record.This example describes
A) architectural innovation.
B) incremental innovation.
C) radical innovation.
D) disruptive innovation.

Question

Quizplus · Accepted Answer

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. To be a disruptive force, however, this new product or technology has to have additional characteristics:1. It begins as a low-cost solution to an existing problem.2. Initially, its performance is inferior to the existing technology, but its rate of technological improvement over time is faster than the rate of performance increases required by different market segments.