Disruptive Product Strategy for Industry First Mover: A Bottom-Up, Low-Cost Innovation Model

Abstract

This chapter combines disruptive innovation with industry evolution theory to construct an innovation planning phase, including exploration, assessment, strategy formation, and activity planning, and further verified it using qualitative interviews and quantitative analysis of a successful disruptive innovation case in the IT industry. The research constructs an industry evolution model of disruptive innovation and first mover’s strategic direction. When an enterprise is positioned in the market with a disruptive innovation, it is expected to gain a large market and give customers enough reasons to make a purchase. During the course of the planning phase, a firm should use different strategic approaches, such as innovative differentiation, leading product, low price expansion, and diversification of the product line, in order to create a significant strategic synergy which will help to speed the time to market and obtain the advantage of low cost, thus producing a “single innovation concept with diversified value contribution” to help restructure the entire market.