The Disruption Of A Company

1569 WordsMar 11, 20177 Pages
The Disruption Dilemma I was assigned the book The Disruption Dilemma for this assignment. Gans defined disruption as “what a firm faces when the choices that once drove a firm’s success now become those that destroy it future.” Failing firms tend to pursue the choices and strategies that made them successful. We will go through examples of how a few companies handled themselves in the midst of disruption, the types of disruptions, the reasons for disruptions, some theories of disruption, managing disruption, insuring against it, and finally the future of disruption. Let us start by comparing an old and new disruption dilemma. The Encyclopedia Britanna example is an example of disruption and how successful companies continue to do…show more content…
The key reason a firm fails from disruption is new technology, the ability to imitate, and the failure to take advantage of an opportunity like Blockbuster in 2000. There are a couple of sources of disruption, demand-side, supply-side mechanisms and disruptive innovation. The demand-side where existing firms are blindsided from a new innovation and lose customers from changing customer wants. The supply-side where organizations cannot make organizational changes necessary to compete with new entrants. Disruptive innovation follows an “S Curve” where an organization may initially perform worse and then rapidly improves. Companies need to predict the disruption effect of new technologies, but sometimes they are not appreciated at the time of invention and are ignored. Massively Open Online Courses or MOCC is currently changing the education field by offering free education that threatens expensive universities. A dilemma with new technologies is that they cannot be predicted. If disruptive events could be predicted, they would not really be disruptive, because a business then could plan for it. To lower uncertainties of dilemmas companies need to consider whether they should invest in a new technology, but their existing technology might be working fine for the moment. There is a plethora of ways a firm could be disrupted, but companies do not have enough resources or attention. Even so, sometimes firms see
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