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Nintendo Case Study

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Disruptive technology/ strategy is breaking the law of traditional industrial pattern and introducing a new arrangement focused on unserved and seemingly insignificant customers. When conventional business is focused on pushing limit of the existing technology’s performance to serve the mainstream market, disruptive technology focuses on different performance attributes and provides a product/ service beyond the market expectation. Disruptive technology is not necessarily technologically advance than the existing technology but it is an innovative approach to serve existing unattended and anticipated emerging market. It might not outperform the established technology but it will outperform market in long run. Disruptive product brings customer value proposition. Along with Wii, Apple I- tunes radio and atomic bomb are additional example of disruptive technology use.
The first principle of disruptive technology is to spot the opportunity for new product but not to analyse it through traditional customers and marketing expert’s lenses. It is imperative to divert focus from existing market and focus on foreseen emerging market. Disruptive technology might have comparatively lower cost structure, hence lower expected revenues and profit margins. The last yet equally important principle is not to compare the performance of disruptive product with existing market demand or sustainable product.
As a disruptive technology can change the whole game of business, while determining whether a technology is disruptive or not, it is very important to not have pre-defined mind set and be ready to embrace changes it might bring along. Best way to examine a disruptive technology is to ask right questions to wrong people. Have a discussion with marketing and finance personals over implementing it. Because of their traditional approach and targeted incentives, finance and marketing

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