Sample Essay On Disruptive Innovation

According to Clayton Christensen, the difference between disruptive innovation and innovative efficiencies is that the disruptive innovation helps in the creation of jobs but utilizes capital, helps in sustaining the innovations, and helps in improving the efficiency of innovation. Contrary to it, the efficiency innovations are just like poison choices for the companies, and they are paving the way to the stagnant economies and are destroying the job creation process. The disruptive innovation is stronger due to the reason that it prevents the economy from stagnation and helps to improve the innovative capability of the company. Clayton Christensen has given an example that Indian company Godrej has contributed to the growth of its economy, and this is become possible due to the introduction of disruptive innovation of the lower cost refrigerators. Further, it has created employment opportunities in distribution, production, servicing, and selling of refrigerators, and also gave an opportunity to the small retailers to sell the chilled products to the consumers.
The Innovative efficiencies can be used in an emergency situation such at the time when the sales of the company are low. Since lower price is associated with the innovative efficiencies, so they can help in improving the sales of company by creating an image of lower price in order to attract the consumers. The disruptive innovation can be used in planning and budgeting on the urgent matters. Sometimes it is necessary to make company’s decisions on an urgent basis, so disruptive innovation helps in those matters. It provides innovative and flexible ideas in order to make plans and budget in limited time frame and at the same time it also ensures that they are made in such fa way that they are beneficial on long term basis.