Which of the following statements is true of a firm that creates a radical innovation?
A)It focuses on the established knowledge base of a firm to deliver value.
B)It relies on existing technologies and resources to create a new product.
C)It employs a fundamentally different business model than its rivals.
D)It aims to sustain its current product offering and revenues.

Question

Quizplus · Accepted Answer

Creating a radical innovation involves developing a fundamentally different way of doing business, which requires challenging the existing business models of competitors. Option A is incorrect because a firm that creates a radical innovation would need to go beyond the established knowledge base to create something new. Option B is incorrect because it contradicts the definition of a radical innovation, which involves creating something new rather than relying on existing technologies and resources. Option D is incorrect because sustaining current offerings and revenue is not the objective of a firm that creates a radical innovation.

Which of the Following Statements Is True of a Firm