New Trends in the Global Business Environment

Running head: NEW TRENDS IN THE GLOBAL BUSINESS ENVIRONMENT
New Trends in the Global Business Environment
Name of the Student
Name of the University
Author Note

1NEW TRENDS IN THE GLOBAL BUSINESS ENVIRONMENT
Introduction
Disruptive innovation has been hailed as one of the modern terms that support the fact of
innovation within certain industries. It is very essential to clarify the term because the purpose of
the assignment is about explaining the different perspectives of disruptive innovation in the hotel
industry and taxi industry. It is one of the most interesting things because it impacts the
industries in a large way. This technology affects the functioning of the market. This technology
has left a lot of impact on the ways the companies used to do their business. This has impacted
on the success rate of the companies as well because it would hamper the business of the
companies who were not ready to adopt it. The organizations who have adopted the use of this
technological innovation process have felt its impact on their business. The companies who have
not improved on the previous technology can use this innovation technology in various aspects.
It is a complicated process for the companies’ management to invest in disruptive innovation
since they have to adopt on the disruptive technologies (Christensen, Raynor and McDonald
2015).
Brief summary of the article
This article is the manifestation of the use of disruptive innovation in many companies.
The companies like Airbnb in hotel industry and Uber in taxi industry have felt the impact of
disruptive innovation in a huge way (Guttentag 2015). Many upcoming and established
companies have practiced this in their endeavor to become more famous. However, this has
become to be the reason of its own failure. There are several shortcomings in this innovation
process that have hampered the growth of the companies. There have been certain
misconceptions about this disruptive innovation on whether it can be attributed to Uber. There

2NEW TRENDS IN THE GLOBAL BUSINESS ENVIRONMENT
are many downward steps that could be attributed to the application if the disruption theory
(Christensen, Raynor and McDonald 2015).
The disruptive innovation process encourages the smaller companies to take big steps so
they can be able to challenge the incumbent businesses which have already held the biggest
places in the certain industry (Christensen, Raynor and McDonald 2015). The new entrants in the
industry should like to address the business situations from an angle where they can successfully
challenge the leading business organizations by targeting the overlooked target segments
(Markides 2012). These disruptive innovation models look to please the overlooked segments by
functioning more effectively, delivering goods at a lower price. The already established business
organizations do not intend to focus on these target segments (Armstrong et al. 2015). They
focus on the segments where they can get more profits. This is how the new entrants move up in
their industry as they deliver all the required performances by their customers. Uber is
considered to be an organization in the taxi industry who have contributed largely to bring
advantages in this industry. the financial and strategic achievements that they have acquired in
the recent times, do not let them fall into the category of the list of the companies to practice
disruptive innovation (Wessel and Christensen 2012). The incumbent businesses overlook the
low-end and new-market target segments. The disruptive organizations look to provide the best
products and service to the low-end customers while the disrupters also make a market where no
competitors have existed before. However, these conditions cannot be attributed to Uber (Lepore
2014). Some key questions will have to be identified in this scenario to do a literature review on
this article.
1. Can Uber be an example for disruptive innovation?
2. Can the instance of Airbnb be taken as an example for disruptive innovation?

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3. What are the relations between quality and mainstream customers in case of
disruptive innovation?
4. What is the mantra of ‘disrupt or be disrupted’ mean?
Literature review
In this part of the assignment, a mini literature review will be done on the various key
questions that have been identified in the article. The proper justification has to be brought to the
questions because these things have become one very important aspect in the business arena. the
business associate have targeted to grab the market opportunities to the fullest. All the small
startup companies should aim to take the advantages of this technology named disruptive
innovation (Cortez 2014).
1. Can Uber be an example for disruptive innovation?
Uber has always been taken as the example for the disruptive innovation process.
However, Uber cannot be tagged as a proper example for disruptive innovation. This company
has been regarded as a much celebrated transport companies (Isaac 2014). The mobile
application of that company has been helping the passengers. The organization has received a
huge growth in the last few years. The financial success of the organization has been huge as
well. The classic tests of disruptive innovation are not properly applicable to Uber. This is
because Uber did not made its way from being originated in the low-ending or new-market
footholds. The reason that is considered to be one of the most important things is the fact that
Uber had caught hold of the mainstream market in a better way than the incumbents. This is why
experts have suggested not including Uber in the list of the companies to practice disruptive
innovation (Isaac 2014).