Netflix developed a subscription-based model of DVD rental based on using the Internet and the mail instead of the retail location approach used by Blockbuster. This innovative subscription service would be correctly classified as a competence-destroying innovation because of its devastating impact on traditional movie rental businesses such as Blockbuster.

Question

Quizplus · Accepted Answer

The statement is accurate. Competence-destroying innovation refers to innovations that render an existing product, service, or business model obsolete, which is precisely what Netflix's subscription service did to traditional movie rental businesses like Blockbuster.

Netflix Developed a Subscription-Based Model of DVD Rental Based on Using