Case 5.

1: Xerox and Iphone

1. What is the relationship between disruptive technology and blue ocean strategy?
Disruptive Technology: Christensen (1998)s impactful research on Disruptive Technology
may also be a source of opportunities. Christensen observed that in a wide range of markets,
including markets driven by technological innovations, established companies have a
tendency to overshoot the needs of their main customers by offering products that are too
sophisticated, too complex, and that achieve a performance level higher than necessary. This
creates :an opportunity for disruptive technologies that initially perform worse than
established technologies on the key performance dimension, but that improve through trial
and error and technological improvements, to the point where they are able to satisfy the
main market (point A in Figure 2). At this point, mainstream customers naturally switch to the
new technology and the established technology is disrupted.

2. Can you give example of any possible future disruptive technology?

The internet of things- A world where everyone and everything is connected. Sensors in
everyday objects and devices will be capable of automatically transmitting data over highspeed networks. Those previously 'dumb' objects will then become 'smart' objects capable of
automated machine-to-machine (M2M) communications.
3D printing- This technology opens up amazing possibilities for individuals and businesses,
with fully working parts able to be created at the touch of a button and for a fraction of the
cost of doing it previously. Already 3D printers have been used to create everything from toys
and parts for NASA's Mars explorer to medical implants.
Graphene- The development of the super strong and highly conductive graphene has huge
implications for the traditionally silicon-dependant technology industry. Potential
applications include flexible display screens, electric circuits, solar cells and use in medical,
chemical and industrial processes

3. How do you explain disruptive technology as competitive advantage of the firms?

Disruptive Technology can assist a firm to maintain a competitive advantage in the
marketplace. Different terminology is used in the literature to describe disruptive technology
associated with uncertainty and risk.The term disruptive technology is describe and explained
in comparison to sustaining technology.