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Practice 3 copia
Innovación y Cambio Tecnológico (Universidad Carlos III de Madrid)
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1. What is this data suggesting to us?
This data allows us to study the percentage of firms that remain in the industry.
2. The videogames market
a) Can we define the Wii (launched in 2006) as a disruptive innovation in the videogames industry?
Why?
Yes, as it is a product with a whole new usage system for leisure in comparison with its competitors. As the
text says, each time a new product enters the market it implies a change in the leadership within the industry.
Moreover, this new product it's targeted at a wider audience and not to the traditional gamer. With the launch
of previous consoles, firms such as Microsoft or Sony competed with one another to make them more
complex and interesting for their users, but once Wii entered the market it was a safe option for those who
weren’t such “experts” in the field.
It is disruptive as it is technologically inferior and it is creating a new market. But it improved in other
aspects, it was very innovative and much cheaper.
b) Do you think that the videogames for the tablet or for the Smartphone represent a new disruptive
innovation for the sector?
Yes, as stated before is a new way of playing a game in a more innovative and creative form that attracts a
greater audience.
Meaning that they adapted to the majority of the consumers and not only those that spend hours playing and
understanding the complex mechanisms of a game and its features. It was made for easy and rapid leisure
time.
Whole new market. Ease of use, as you can play on the move.
Everyone owns a smartphone nowadays.
3. The insulin market
a) Do you think Eli Lilly followed a technological trajectory that ended up “surpassing” market
needs? Why?
Yes, as it did not adapt to the market possibilities. They did not take into account what their target market
preferred (or was able to consume economically) and as they started innovating with their products and
inflating their prices, their sales diminished.
b) What is the main change occurring in the early 80s that alters the characteristics on which
competition within the industry is based?
By developing insulin pens, Nordisk focused on finding a convenient and easy use of insulin while adjusting
to the market needs.
Eli Lilly's approach to insulin would be a technology-push strategy. The firm did not take into account the
market needs and only focused on improving the formula, and making insulin as pure as possible although it
was not necessary for the majority of the public.
Nordisk’s approach focused on convenience for the customer, using a market-pull strategy and creating the
insulin pen.
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