As a Start-Up Company, DigiWrist Entered the Low End of the Highly

question 26

Multiple Choice

As a start-up company, DigiWrist entered the low end of the highly competitive smartwatch industry with its low-cost smartwatches. Initially, the company was able to sell its inferior technology due to its low prices. Over the years, however, its rate of technology improvements increased above the industry standards. This helped the company to create a strong strategic position for its smartwatches in the high-end segment and claim a premium price. Which of the following types of innovation does this scenario best illustrate?

• A) radical innovation
• B) incremental innovation
• C) architectural innovation
• D) disruptive innovation

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Definitions:

Regulatory Agency

A governmental body responsible for enforcing laws and regulations to protect public health, safety, environment, and to ensure fair market competition.

Utilitarianism

An ethical theory that states that the best action is the one that maximizes utility, usually defined as that which produces the greatest well-being of the greatest number of people.

Greenpeace

An international environmental organization that promotes earth-friendly policies and actions.

Corporate Citizenship

The behavior of a company viewed in terms of its contribution to society through its ethical business practices and social responsibility initiatives.