Disruptive Innovation in a Global Marketplace
Disruptive technology is defined as a technology that alters the bases of competition by changing the performance metrics in which firms compete (Danneels, 2004). Customer needs and demands are a driving force behind innovation and the adoption of disruptive technology. Customers determine the value of products and services, along with the attributes they value most (Danneels, 2004).
The technology behind a product or service helps differentiate the item and allows a firm to obtain a competitive advantage. When analyzing disruptive technology, it is important to assess Amazon’s practices. Amazon has been able to identify itself in the market as Walmart’s greatest competitor. This notion is not only due to its low prices and convenience, but also its disruptive innovations (Amazon.Com, n.d.).
In assessing Amazon’s practices, the three most impactful, disruptive technologies include Amazon Prime, Amazon Go, and Amazon Home Services (Amazon.Com, n.d.). Each of these services is used to secure market share by targeting a different audience. These services are innovations that have allowed Amazon to gain a competitive edge in the market while being able to maintain a level of competitiveness with Walmart (Amazon.Com, n.d.).
