Question

Big firms fail to see disruptive innovations as a threat because:
A. they primarily focus on the bottom line.
B. they concentrate only on future financial performance.
C. they don't indulge in playing catch-up.
D. they fail to listen to customer needs.
E. they overestimate the impact of these innovations.

Answer 1

Answer:

A) they primarily focus on the bottom line.

Explanation:

Most disruptive innovations are developed by entrepreneurs and relatively small firms. Many times these smaller firms end up being purchased by larger corporations that further develop or exploit these innovations.

That is true even for former entrepreneurs, like the founders of Google, who after becoming billionaires forgot about innovating, and decided that it was easier to purchase startups than to develop new services themselves.