Technology Management in Electronic Goods Company Essay

Technology Management in Electronic Goods Company - Essay Example We will consider the performance and demands of the products in the market in the light of the theoretical framework developed by Christensen. We will discuss the contribution of Christensen’s concepts in developing the strategy for avoiding the disruption in the market from the point of view of incumbent (Bower, 1995). We will also consider the prospects of Electra from the point of view of new emergent in the market as well as disruptors. Low-end disruption and high-end disruption scenarios will be discussed herein. Criterion or the basis for production and purchase is included. New market disruption will be highlighted in the later parts of the report. At the end, the strategies to maintain a sustained technological development in the market to avoid incurring of disruption will be described (Bower, 1995). 2. Theoretical Concepts: Christensen’s Contribution 2.1) Basic Concepts The theoretical framework of disruption in the market of existing technologies and products was laid by Clayton M. Christensen. He proposed the ideas of â€Å"Disruptive Innovation† which refers the products or values in the market that provide new dimensions or uses to customers (Bower, 1995). It focuses on providing something new in the market which is markedly different than the current products. The performance of the new products may or may not be superior to the existing technology but these items are supporting the desires of the people who are purchasing them. The term of â€Å"disruption† is often used in the realm of business which defines the phenomenon of tremendous improvement in the current technology that the existing technology couldn’t predict or anticipate (Archibugi, 1997). The innovation in the market can be introduced either by targeting a new set of consumers or lowering the prices of the existing products by lowering their performance from the current standards but keeping them above the expectations of consumers (Adner, 2002). Disruptive technology is markedly different from sustainable innovation. The latter refers to the sane series of products in the market with superior performance (Chandy, 2000). The applications could be increased with superior output. However, the dimensions of the products are kept the same. In disruptive technology, the marketers try an entirely new type of product that has no prior link to the existing technology. The new technology targets a set of consumers. The consumers may lie at lo-end or high-end of quality expectations. Their demand sets the basis for disruption of the existing products. If the new products meet the requirements of the consumers at lower performance and cost, then disruption is certainly set in (Charitou, 2012). 2.2) Intersecting Performance Projector of Sustainable Technology and Disruptive Technology The hypothesis proposed by Christensen declares the firms and companies to be climbers in performance measures. They need to upgrade their standards with time to keep up with the market requirements. The continuous rise in performance marks the existence of the company in the market. If improvement in the performance is not achieved, then it would reduce the business considerably. Christensen’s concept of the company states that the firm holds its existing â€Å"value networks† that doesn’t emphasize much on innovations in the market (Christensen, 1998). The hypothesis of Christensen focused on strategies to avoid the technological disruption in the market.