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Types of Innovation

This exercise addresses the strategic implications of innovation for a firm's competitive advantage, as well as the impact of innovation on markets and industry life cycles overall.

This goal of this exercise is to recognize the four types of innovation, based on the following product descriptions:

Canon Copier $$ While Xerox had been the dominant supplier for copiers worldwide, Canon redesigned the copier, so it didn$$t require professional service and the user could maintain the machine.

Ford Model T $$ Ford$$s introduction of the Model T exemplifies targeting new markets with the use of new technology.

Gillette Fusion Razor $$ Gillette sustains its competitive advantage by continually improving its blades. The company initially developed razors with one blade; it now has razors with six blades.

Coursera MOOCs $$ Coursera created havoc among traditional university methods by offering massive open online courses.

Suppose that a company has successfully used architectural innovation to reconfigure a product and is now the market leader. In order to improve its product offering, extend the time that it can extract profits from its products, and maintain high entry barriers for new rivals, it will most likely engage in $\_\_\_\_\_\_\_\_$Blank innovation next.

Multiple Choice

radical

architectural

incremental

disruptive