BUA4001 Preparation for Assignment 2 Briefing What is disruptive innovation? Disruptive innovation refers to the process of transforming an expensive or highly sophisticated product, offering, or service into one that is simpler, more affordable, and accessible to a broader population. Disruptive innovation requires enabling technology, an innovative business model, and a coherent value network. For example: Idea of disruptive innovation is to find simpler and more cost effective means to deliver products or services similar to existing ones that are technically complex, cumbersome or highly priced (Gandhe, 2015). What are the two classes of innovation? Revolutionary innovation: ? Drastically changed innovation/technologies which set themselves apart from existing ones ? Orientate themselves towards the futures customers ? Higher uncertainty but also high potential Evolutionary innovation: ? Gradual improvement of existing innovation/technologies over time ? Orientate themselves towards todays customers Examples of disruptive innovation On the internet, e.g. Wikipedia, Amazon, Alibaba, For mobile phone: e.g. Apple(intelligent mobile phone) Data storage: e.g.memory card: SD and mini SD memory cards for either camera or mobile phone, cloud storage Lighting: LED Energy: E.g. Solar panel, bio-fuel Car:Tesla\'s electric car, automatic car controlled by GPS Transportation: High-speed train in China, sonic train in Japan Communicate : Facebook, Twitter, Whatsapp Can disruptive innovation be a service? Yes, for example:

2. Video streaming services
4. Online search engines and encyclopedies
6. AirBnB
8. Online education

What is the idea of disruptive innovation? In theory, disruptive innovation is the introduction of new skills, knowledge and technology into the market, thereby rendering existing counterparts obsolete or less valuable. One iconic example is digital marketing. Due to technological advancement, like 5G is overtaking 4G as the newer and more powerful broadband cellular network. Toyota was initially producing economical cars then started making luxury cars at economical prices. Netflix introduced streaming technology instead of physical devise (e.g. DVD) in home entertainment industry. Company Capabilities and Resources Company capabilties and resources explain the internal factos. They are the things that an organisation does well and that distinguishes it from others.For example; motivation of employees, access to materials / supplies / equipment or technology Company capabilties and resources may also refers to the disadvantages of a company, the things that can be improved. This could refer to to demotivated employees or lack of resources. Relevant theories can be used to explain the resources and capabilities. What is macro-environment? What are its elements? A business macro environment is the larger external context within which a business operates (Armstrong, 2020). It involves the following factors:

Political Economic Socio-cultural Technological Legal Natural Environment Culture

What is micro-environment? What are its elements? - GROUP 1 Definition: Observes the smaller environment surrounding the business and considers the strengths and weaknesses in relation to the following elements: o Customers o Company o Suppliers o Competitors o Marketing intermediaries o Public (stakeholders)? What is the three-layer model of a product?