Ch7 Innovation types & questions

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 __________ innovation next.

incremental

All of the following are strategies an established firm can adopt in order to protect itself from disruptive innovation by rivals EXCEPT that the firm should _______________.

rely primarily on architectural innovation to frequently offer "reconfigured" products

GE is disrupting itself by using reverse innovation to create low-cost health care diagnostic products in emerging markets. All of the following are true about this strategy EXCEPT:

GE is creating a new industry