Which of the following does not illustrate the idea of creative destruction?
A) Digital downloads have shrunk the market for CDs and DVDs
B) Online retail sales have increased, while brick-&-mortar sales have slowed down
C) The opening of a new mall reduces the traffic in another mall
D) A firm has to destroy some of the expired products in its inventory

Question

Quizplus · Accepted Answer

The destruction of expired products in a firm's inventory is not a part of creative destruction, as it doesn't involve the replacement or elimination of a particular product or market by a newer and more innovative one. Rather, it is a routine business practice to maintain quality control and meet regulatory compliance.

A, B, and C are all examples of creative destruction, where new technological or market innovations disrupt the existing ones and create new opportunities for growth and innovation.

Which of the Following Does Not Illustrate the Idea of Creative