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:

Fatty Cushion

A layer of fat that provides protection and cushioning to parts of the body, acting as a shock absorber and insulator.

Stricture

The narrowing of an opening, tube, or canal, such as the urethra or esophagus.

Passageway

A route or path that allows access from one place to another, often used in the context of anatomical structures or buildings.

Movement

The act or process of changing physical location or position by people or objects.