Muhammad Owais Danish

Muhammad Saad Siddiqui

- Comprehensive Range of Information
- A Concept
- Commonly used in Marketing

DISRUPTIVE
INNOVATION

What is it ?
An innovation that creates new market by applying
a different set of values, which ultimately
overtakes an existing market

Source: Paap, J., & Katz, R. (2004). Anticipating disruptive innovation. Research Technology Management, 47(5), 13.

DISRUPTIVE
INNOVATION
The term was defined and phenomenon was
initially analyzed byClayton M.
Christensen(A US scholar and teacher)
beginning in 1995.
The concept of disruptive
innovation was given in his first
book, The innovators
Dilemma.
Source: Christensen, C. (2013). The innovator's dilemma: when new
technologies cause great firms to fail. Harvard Business Review Press.

Theory
Term introduced by, Clayton M. Christensen

enerally, disruptive innovations were technologically

straightforward, consisting of off-the-shelf components put together
in a product architecture that was often simpler than prior
approaches. They offered less of what customers in established
markets wanted and so could rarely be initially employed there. They
offered a different package of attributes valued only in emerging
markets remote from, and unimportant to, the mainstream

Want to see an example ?

What is Netflix ?
Global

provider of streaming movies & TV-Series

Started

as DVD-by-mail service in America, in 1998

Introduced
Expanded
Now,

online streaming in 2007

to Canada in 2010

serving over 190 Countries, including

Pakistan

What did it disrupt ?

It

actually dented the DVD rental stores

Most

majorly it disrupted Blockbuster LLC, formerly

known as Blockbuster DVD

Blockbuster

is an DVD rental store, which had stores all

over the US
Due

to Netflix taking over, Blockbuster faced the

scenario of bankruptcy in 2010 and was delisted from
New York Stock Exchange

What did they actually

do?
They started as DVD Rental Store

They started offering millions of content online for as

low as $9/month

Subscribers can also order DVD Online for their

favorite shows and movies

They also offer content on PC, Laptop, Tablet, Mobile,

Smart TVs

Since its cheap, the number of customers started

growing consistently

All about Numbers !

Video about Numbers

Netflix Business Model

Its business model was once held as a major neweconomy company with a unique digital business
model, by fully incorporating the internet into its
operations

Took advantage of weaknesses of the Blockbuster

business by removing the physical DVD constraint

It expanded it to various countries, where as

blockbuster remained in US and a few other countries

Next in order of
business
Partnering with various Hotels chains, like Marriot so

there customers can have Netflix in their hotel rooms

To date it stands out as the world leader in on-demand

entertainment with more than 100 million hours of
media

Its major competitors are Hulu & Amazon Prime

It also promotes itself through

witty ads

Global Expansion Over The

Years
2010 Canada

2011 Latin America

2012 UK, Ireland, Denmark, Finland, Norway &

Sweden

2013 Netherlands

2014 Austria, Belgium, France, Germany,

Luxembourg, Switzerland

2015 Australia, New Zealand, Italy, Portugal, Spain

2016 Global, except China, Syria, N.Korea & Crimea

Streaming Worldwide Ad

NETFLIX in Pakistan

Netflix has also penetrated in Pakistan as well.

A severe threat for DVD stores, broadband service providers,

and TV cable networks

The express tribune has covered the news Television giant

Netflix comes to Pakistan

References

Christensen, C. (2013).The innovator's dilemma: when new

technologies cause great firms to fail. Harvard Business Review
Press.

Paap, J., & Katz, R. (2004). Anticipating disruptive

innovation.Research Technology Management,47(5), 13.

http://tribune.com.pk/story/1023298/netflix-in-pakistan/

http://tribune.com.pk/story/812659/zinda-bhaag-to-be-the-firstpakistani-film-on-netflix/

http://www.pakistantelegraph.com/index.php/sid/231335197