Disruptive Innovations Tend to Start Off with Performance That Is

question 102

Essay

Disruptive innovations tend to start off with performance that is not as good in quality as the existing solutions.If this is the case,how are they able to succeed in taking away market share from existing solutions?

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Definitions:

FIFO

First-In, First-Out, an inventory valuation method where goods purchased or manufactured first are sold or used first.

LIFO

Last In, First Out, an inventory valuation method where the most recently produced items are recorded as sold first.

Bonus Rate

An additional rate of interest applied over the standard rate in certain savings accounts or investments as an incentive.

Specific Identification Method

An inventory valuation method that tracks the cost of specific items purchased and sold.