Innovation of New Technology
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Added on 2021-04-17
Innovation of New Technology
Added on 2021-04-17
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Innovation of new technology
1Table of ContentsIntroduction...........................................................................................................................................2Literature Review..................................................................................................................................2Conclusion.............................................................................................................................................2References.............................................................................................................................................3
2IntroductionIncumbents in a business are the individual that looks on the surrounding and offer better services to the customers. It is answerable to all the changes in the market and is primary leading the market place. Until, challenger comes in the market offering the same services as incumbents but with better benefits. For example considering eBay as an incumbent and challenger of eBay is Amazon. Incumbents are holding a place in the market and is been used by the customers but whenever some new company overtakes the market of old company it is called as challenger. Challenger beats the market of incumbent by providing the same services but by offering better options. When challenger overtakes the market incumbents are often overlooked. Challengers create an environment which is better in terms of performance (Scientific Reseach, 2018). In this report we will discuss how challenger replaces the incumbents from the market. As challengers interchanges the customer market by setting a target price and rise new opportunity in the market. Disruptive technology is useful for small businesses to make the changes in the way a business is operating so that it grows as a large organisation (Karthikeyan & Jonsson, 2016). Incumbents are often beaten by the challengers, who capture the market focus in a short duration of time. Incumbents also try to come up in the market again but due to unavailability of new innovation they lack. Incumbents are already in the market so their name is well known among customers but knowing their drawbacks, challengers overtake the market by serving better products and services (Anthony, 2017).Literature ReviewIn this report considering the example for two well-known companies like Amazon and eBay, where Amazon is treated as a challenger and eBay is an incumbent. Amazon is one
3of the largest retail companies. It started its business by just selling online books which futuregot expanded to selling off video, movies, audios, software’s, clothes, accessories, toys and so on (Johnson, 2013). Amazon has successfully beaten eBay as it focuses on customer’s behaviours by providing them with additional bonus and benefits; because of this the value ofmarket is hiked. Wherein, eBay is an online auction site, who sells its product via showcasingthe products online. It is true that challengers can beat incumbent’s like Amazon crushed the market of eBay. It happens because challengers start their planning at initial stage and work on the area in which incumbents are lacking. They first analysis what services are provided by incumbents in the market so that strategy could be planned accordingly to improve the selling budget. Research is the first and foremost step undertaken by challenger as they understand the market, the advantages and disadvantages of the on-going company. So, that better policies could be designed. In case of Amazon, it analysed the market and offered customers to seller their products directly on Amazon without deciding an auction price.In the perception of (Ansari & Krop, 2012), eBay lacked the market trust due to some quality issues and scandal act of the products. Amazon worked on this drawback by building trust among customers and selling good quality of products because of this reason market traffic drove towards Amazon. It also enhanced the system by reaching out to customers rather than waiting for the customers to reach out to them. Amazon formed a user friendly platform by providing a good shopping experience to customers as there is ease to access the services as Amazon promises to serve trustworthy products.It was researched in the opinion of (Frankenberger, Weiblen,& Gassmann, 2014), it is fact that incumbents are beaten by the challenger like market of eBay has been crushed by Amazon. In today’s time Amazon is one of the topmost retail companies and has made a good place in the market by capturing the customers from all sectors. The reason of this success is that it got motivated towards the way to offer services to client at low price in
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