Question

Microsoft and Intel are giants of the computer industry. Why do you think that these large companies have had such a hard time competing against disruptive innovations such as mobile computing? Discuss

Answer 1

Although Microsoft and Intel may be giants of the computer industry, there could be an issue comprehending the concept of Disruptive innovation in the right light by those companies. In actual, the basic principles of the disruptive innovation theory is not well-understood by the Companies in its true sense due to which it is not applied properly in a Company. Moreover, in spite of the alterations and amendments made in the primary theory of disruptive innovation, the initial theory is so popular among the Companies that it has overridden the significance of its subsequent changes thereby adding to the misapplication of the theory in any given industry. In addition, Entrepreneurs further fail to realize that different types of innovations would resort to different types of strategies. Hence it is concern and therefore these large companies have had such a hard time competing against disruptive innovations such as mobile computing and other technologies.

If the innovation is not based upon integrated insights of the researches to that of the theory of disruptive innovations, then the large organizations would end up applying wrong tools for the application of this theory thereby resulting to lesser chance of success of disruptive innovations. The main issue that concerns of the large organizations from undertaking disruptive innovations is the fact that the scope of it being accepted by the customer is prone to high risk while the investment that goes into disruptive innovation is immense and hence they prefer to play with sustainable innovation that could back some support from the consumers than the disruptive innovation. This happens especially in the case of Investor’s dilemma when they have already made a mark for itself in the industry and its position in the market where risking the status by introducing a disruptive innovation could be a gamble all by itself. Therefore, large organizations are less likely to create disruptive innovations and it remains a concern in spite of it impact hugely on various successful companies.