The Innovation Of The Multinational Companies

There are many opportunities available for companies willing to venture into new, international markets. Reaching more customers and therefore, turning a larger profit are two fairly obvious reasons for companies to consider global expansion. However, the potential benefits do no end there. Expanding to international markets can hold less obvious, yet extremely beneficial appeals such as access to new and different talent pools, grander output requires great advances in efficiency, and international expansion can, in some cases, aid in “future proofing” the company.

Assink, M. et al (2006), Inhibitors of disruptive innovation capability: a conceptual model’. European Journal of Innovation Management, [Online], 9(2), pp.215-233. Available from: http://www.emeraldinsight.com.ezproxy.liv.ac.uk/journals.htm?issn=1460-1060&volume=9&issue=2&articleid=1550568&show=html (Accessed: 10 July 2014)

Clayton Christensen is responsible for the term, disruptive innovation in which the smaller, unassuming store comes out of no where and takes the lead, which in this case the disruptor is the off-price retailer, T.J. Maxx and the disruptee is the full-service department store in this case is Macy’s (Christensen, 2017).

Disruptive technology brings about many opportunities for both innovation and productivity outputs, however it can also be a risk. It includes developments that create substantial change across the economy for most people and businesses, the impact of which causes significant costs to adjust to due to capital being made obsolete and workers becoming underutilised. Clayton Christensen is considered to be the world’s top expert on the concepts of disruption innovation and technology and according to him the ‘introduction of digital disruption offers a better alternative to the present approach for solving customer problems’. Digital disruption is redefining the norm, changing both markets and competitors around the world. Whilst it can be a positive change for

For instance, Wal-Mart is a good example of a company that has used a disruptive business model (Hess, 2012). Wal-Mart came into the market and introduced cheaper products while opening thousands of stores across the globe. Their concept of buying less at a lesser fee seemed to have attracted a lot of customers and this translated to the right revenues for the company within the first year of operation. Wal-Mart is arguably the biggest store globally and the largest employer with an employment capacity of over two million people globally. A disruptive model ensures that a company leaves an old way of shaping their products and learns new methods of

What Christensen means is that using the words “disruptive innovation” in a non-jargon way is very difficult, as even Uber, the company most pointed to by many as the epitome of a disruptive company cannot even be defined as disruptive. Perhaps he is implying that the misuse of certain words can be equated to jargon, such as when people in everyday conversation refer to Uber as a “disruptive” company. Because of this, Christensen believes that the mantra that commands: “Disrupt or be disrupted” can be very misleading. He advises corporate leaders of incumbent companies to not overreact to this mantra by trying to solve the problem before it is one. Christensen implies that overuse of this phrase requires incumbent businesses to be extra vigilant

Other companies have used Disruptive Innovation to come in at the bottom of a market and focus on a lower cost and change the way consumers purchase goods and services, changing the market forever. One of the best examples of this type of Disruptive Innovation was Toyota. Toyota came into the American market and offered inexpensive cars that offered very view features and small 4 cylinder engines. At first many consumers turned their nose up to the Toyota products. But some consumers bought the Toyota because they were a cheaper option for automobile transportation. When more customers started to purchase Toyotas and the company was able to establish a solid footing in the American Business market and they started to change the model of their business. Toyota started to offer higher end cars and eventually moved into the luxury automobile industry with the Lexus line of cars. Disruptive innovation is a continual process and happens in business all the time. You can also see it in the car market right now with Hyundai and Kia.

During the past nine weeks, you were exposed to a variety of perspectives on innovation via case studies and a collection of readings. You analyzed company after company and situation after situation that

There are three critical elements of disruption (these were first identified in the book, The Innovator’s Dilemma and are illustrated in the chart at right): ● A rate of improvement that customers can fully use or absorb. This is represented by the dotted line. ● A rate of improvement that goes beyond what customers can fully use or absorb. The pace of technological progress almost always outstrips the ability of customers in any given tier of the market to use it, in part because companies keep striving to make better products that they can sell for higher profit margins to their most demanding, high-end customers. This rate of improvement is shown by the two solid lines in the chart. ● A distinction between sustaining and disruptive innovation. A sustaining innovation targets those demanding, high-end customers with better performance than previously available, whether that performance is an incremental improvement or a breakFor Additional Information on how to know whether your idea has disruptive potential, go to: http://my.summary.com

The impact of disruptive technology has changed the way of doing business of the companies that are discussed in this case.

This chapter is aimed at providing a context of the theory of disruptive innovation (DI) an examination of its representation in the academic literature. Section 2.2 explains the history, usage and evolution of the term, including the identification of important articles, authors and themes.

The influence new technologies have on our society is colossal; Sweeping over businesses, it changes their way to work and their strategies (Manyika, o.a., 2013). To understand why new technologies have such an impact on us, one must understand why new ways to see the world is something worth striving for.

“Technology is nothing if you don’t have the right capabilities to use that technology,” stated Farid Fezoua, the CEO of GE Healthcare Africa (Guest 25). As urbanization progresses and technology improves, new forms of innovation are being developed by humans around the world. Contrary to the usual approach of engineers to create and sell products for developed countries before developing countries (Winter and Govindarajan 82), reverse innovation does the opposite, forming goods based on the needs of developing countries and then improving the products for sale in developed countries (Simula, Hossain, and Halme 1567). Moreover, reverse innovation allows global companies to sell higher-quality goods for lower prices, increasing their competitive edge (Winter and Govindarajan 83).

When you think of Harley-Davidson, you think of an all-American male riding on the open roads of the United States. It is an iconic American brand and well known to exude confidence and “cool”. However, with a vibrant history in the American culture, Harley-Davidson soon reached a point where they needed to expand their company. They needed to globalize their version of “American adventure” and sell that to the rest of the world, and they were able to do so by insourcing, outsourcing, exporting, and global sourcing. “International business is done by global sourcing, import/export, licensing, and franchising” (Schemerhorn). By encompassing all of these details into their financial plans, Harley-Davidson was able to encompass globalization.

A disruptive innovation is a concept of innovation that encompasses and establishes a new market by disrupting the current trends in the market and their existing value network (West, n.d.). It results in the replacement of the ruling market firms, alliances and products by capture a niche and an untapped field in the market. Usually the untapped market includes a segment of customers whose needs are either not addressed or overlooked. Capturing these essentials, thus the concept defines a substantial societal influence. Despite a disruptive innovation being revolutionary in nature, an innovation does not necessarily mean disruptive always. In most cases, it has been seen that the light of disruptive innovation is usually brought by the outsiders instead of the existing pioneers in the market. Basically, a process of disruptive innovation takes a longer