When online trading emerged in the late 1990s, A.G.Edwards avoided online trading because personal relations with brokerage clients are central to the firm's strategy.Which of the following responses of firms to disruptive innovations does this example illustrate?
A)Focusing on traditional mode of business
B)Offering lower cost products or services
C)Entering a strategic alliance with a global player
D)Developing better product differentiation
E)Matching the competitors' move

Question

Quizplus · Accepted Answer

A.G. Edwards avoided online trading because they focused on their traditional mode of business that emphasized personal relationships with brokerage clients. This is an example of a firm resisting a disruptive innovation and sticking to their existing strategy.

When Online Trading Emerged in the Late 1990s, A