TRUE OR FLASE

3 4 Required Homework Questions 6 Industries Never Go Through Multiple Stages as the Disruption Develops Disruption Does Not Have to Include Technological Innovation Disruptions Often Begin at the High-end of the Market Disruption is Almost Always an Instantaneous Event The Disruption May Take Time to Develop or Be Meteor-like W NH OO OO Technological Advances are the Sole Driver of the Disruption The Initial Disruptor is Always the Company that Succeeds in Becoming the Market Leader Innovations are Not Readily Identifiable as Disruptive - Particularly at Launch A Disruption is characterized as an innovation that eventually displaces an existing market, the market's leaders and the market's values. Disruptions are Often Led by New Entrants DRequired Homework Questions The less than half of the disruptions over the last several decades have been digital. Disruptive Digititization is significantly affecting financial performance. Companies driving Disruptive Digitization have not exceeded the market shares of the incumbents they are replacing. Disruptive Digitization is not altering the commercial cycle - the time to fund, launch and grow a business and achieve significant market share cannot be shrunk. Disruptive Digitization is colliding with the environment of cheap and easy capital in a Cash Tsunami. The speed at which disruptions have been happening has accelerated dramatically since the beginning of the 21st century.32 Required Homework Questions 83 84 Despite significant barriers to entry enjoyed by NewCos, they may still face competition from new disruptive entrants. 35 Network Effects are not significant in protecting NewCos from competitive margin erosion. 86 According to economic theory, additional players should enter the markets with excess profits and competition should erode NewCos' profits. Digital Disruptors also enjoy huge economies of scale. NewCos will be able to acquire competitors to grow their market shares above 40% even if regulators become aggressive