Describe the four stages involved in business model disruption. ...

[D2AR0N]

Describe the four stages involved in business model disruption.
 
  What will be an ideal response?

Question 2

Which of the following occurred during the Commercialization phase of Internet development?
 
  A) The fundamental building blocks of the Internet were realized in actual hardware and software.
  B) Personal computers were invented.
  C) The Domain Name System (DNS) was introduced.
  D) NSF privatized the operation of the Internet's backbone.

[Melissahxx]

Answer to Question 1

In the first disruptive stage, disruptors, often funded by new sources of finance, introduce new products that are less expensive, less capable, and of poorer quality. These early products nevertheless find a niche in a market that incumbents do not serve or are unaware of. In the second stage, disruptors improve their products at a rapid pace, taking advantage of newer technologies at a faster pace than incumbents, expanding their niche market, and eventually attracting a larger customer base from the incumbents' market. In the third stage, the new products and business model become good enough, and even superior to products offered by incumbents. In the fourth stage, incumbent companies lose market share, and either go out of business or are consolidated into other more successful firms that serve a much more limited customer base. Some incumbents survive by finding new customers for their existing product, adopting some of the newer products and business models in separate divisions of their firms, or moving into other often nearby markets.

Answer to Question 2

D