Newer companies create ________ that are cheaper and more likely to alter the competitive space.Established companies can be slow to react or invest in these technologies because they threaten their investment.

Question

Quizplus · Accepted Answer

Disruptive technologies are innovations that create a new market or value network, eventually disrupting an existing market and value network and often replacing established companies. Newer companies are more likely to create these technologies as they are not bound by established investments and processes. Established companies may be slow to react or invest in these technologies because they threaten their current investments. Therefore, disruptive technologies can directly alter the competitive space.

Newer Companies Create ________ That Are Cheaper and More Likely