Key Drivers of Disruptive Innovation

Running Head: BUSINESS ENVIRONMENT 0
KEY DRIVERS OF DISRUPTIVE INNOVATION

BUSINESS ENVIRONMENT 1
Table of Contents
Introduction................................................................................................................................2
Key drivers.................................................................................................................................2
Conclusion..................................................................................................................................6
References..................................................................................................................................7

BUSINESS ENVIRONMENT 2
Introduction
With change in business market environment, long-term stability can only be ensured if an
organisation is going with constant market disruptions within their business models. In recent
years, the progression in the global markets has reinforced organizations to reconfigure their
strategies so that they can compete on global platform effectively (Sosna et al, 2010). It helps
them to achieve competitive advantage at a global scale and Disruptive innovation is
something that alters your product lines, services, or business model in fundamental ways.
Disruptive innovation can be described as a procedure by which a product or service on an
initial level takes root in simple applications at the bottom of a market – usually by being
more accessible and less expensive – and then persistently moves upmarket, ultimately
shifting well-known rivals. With the case of Blockbuster, it can be understood how disruptive
innovation can make or break a business. In 2000, Blockbuster was a booming enterprise;
however, file for bankruptcy 10 years later, and Netflix, a new organisation in 2000, grew as
per market capitalization of $152.7 billion Company (Bloom, 2018) it is today? The response
is simple – Blockbuster did not adapt to the changing world that was seeking innovation in
not only the products and services but also in the business models. Oddly, the partnership
proposal of Netflix is also ignored by Blockbuster.
Hence, in the disruption economy, the most successful organisation will be those who view
the business through the lens of customers. With adoption of technology, various businesses
are disrupting the market and reorganizing traditional industries. Hence, disruptive innovation
can also be understood with digital disruption. It has changed established ways of interacting
and doing business. Disruption can blindside entire industries (Cohen and Kietzmann, 2014).
Acknowledging the drivers of disruptive innovation will help the business in future-proof
their offerings.
Key drivers
Considering the drivers of disruptive innovation, sustainability is known to be one of the
significant drivers as today businesses are competing on global scale with the ever-changing
demand, resource scarcity and change in social environment (Govindarajan and Ramamurti,