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Concept
Disruptive innovation refers to a process where a smaller company with fewer resources successfully challenges established businesses by targeting overlooked segments and offering more accessible or affordable solutions. Over time, these innovations improve and capture a larger market share, often displacing established competitors.
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A value network is a complex set of relationships between organizations or individuals that interact to create and exchange value. It emphasizes the interconnectedness and interdependencies within a system, highlighting how value is co-created through collaboration and shared resources.
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Market disruption occurs when a new product or service significantly alters the competitive landscape, often displacing established market leaders and changing consumer behavior. It typically involves innovative technologies or business models that offer greater value or efficiency, leading to rapid shifts in market dynamics.
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Technological change refers to the process of innovation and diffusion of new technologies, leading to significant shifts in productivity, economic structures, and societal norms. It is a driving force behind economic growth, often creating both opportunities and challenges as industries and labor markets adapt to new advancements.
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Creative destruction is an economic concept where innovation leads to the demise of outdated industries and the birth of new ones, driving economic growth and progress. It emphasizes the constant cycle of renewal in capitalist economies, where old structures are dismantled to make way for new innovations and improvements.
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The Innovator's Dilemma describes the challenge established companies face when they must choose between investing in sustaining innovations that improve their existing products or disruptive innovations that could potentially create new markets but also risk undermining their current business. This dilemma often leads to the downfall of successful companies that fail to adopt disruptive technologies, allowing new entrants to capture market share.
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A paradigm shift refers to a fundamental change in the underlying assumptions or methodologies within a scientific discipline or other structured framework. It often results in new ways of thinking and can lead to significant advancements or transformations in understanding and practice.
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Concept
Incumbent inertia refers to the tendency of established companies to resist change and maintain their current strategies, even in the face of disruptive innovations. This resistance often stems from organizational structures, existing processes, and a focus on short-term performance, which can ultimately hinder their ability to adapt and compete with more agile newcomers.
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Competitive advantage is the attribute that allows an organization to outperform its competitors, achieved through unique resources, capabilities, or positioning. It is essential for long-term success and can be sustained through continuous innovation, strategic planning, and leveraging core competencies.
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Transformational change refers to a profound, systemic shift that fundamentally alters the culture, operations, and outcomes of an organization or system. It is often driven by visionary leadership and requires a comprehensive approach that engages all stakeholders to achieve sustainable, long-term improvements.
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