Essay on CASE STUDY 1

661 Words Sep 13th, 2013 3 Pages
Exploring Innovation in Action: The Changing Nature of the Music Industry

Question 3.
Can you map the different kinds of innovation in the case study? Which were incremental and which radical/discontinuous? Why? Give examples to support your answer.

The first innovation that was mentioned in this case was that of an Incremental Innovation. An incremental innovation is a series of small improvements to an existing product or product line that usually helps maintain or improve its competitive position over time. Incremental innovation is regularly used within the high technology business by companies that need to continue to improve their products to include new features increasingly desired by consumers. The case
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The notion of novelty is relative so a discontinuous innovation for one organization might be an incremental one for another. As the case describes, aspiring musicians no longer need to depend on being picked up by A&R staff from major companies who can bear the costs of recording and production of a physical CD. Instead they can use home recording software and either produce a CD themselves or else go straight to MP3 – and then distribute the product globally via newsgroups, chat rooms, etc. In the process they effectively create a parallel and much more direct music industry which leaves existing players and artists on the sidelines. Napster posed a huge threat to the established music business since it involved no payment of royalties. There are now many other sites emulating and extending what Napster started – sites such as Gnutella, Kazaa, Limewire took the P2P idea further and enabled exchange of many different file formats – text, video, etc. In Napster’s own case the phenomenally successful site concluded a deal with entertainment giant Bertelsman which paved the way for subscription-based services which provide some revenue stream to deal with the royalty issue.
Apple was another company who saw the need for change, and successfully implemented discontinuous innovation to shake up the music industry. With the launch of their successful iPod personal

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