Beruflich Dokumente
Kultur Dokumente
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Program: GM 2
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Chapter 3: Radical Innovation
Radical innovation blows up the existing system or process and replaces it with something
entirely new. An innovation that has a significant impact on a market and on the economic
activity of firms in that market. This concept focuses on the impact of innovations as opposed
to their novelty. Radical innovation, concerned with exploration of new technology,
is fundamentally different from incremental innovation that is concerned with exploitation of
existing technology. create a new market and value network, and eventually disrupts an existing
market and value network displacing an earlier technology. It is about radical changes to the
current business, capabilities or markets. It lets a technology or product reach a new frontier.
Tokopedia provide a new payment method for every features they have. In tokopedia we can
pay it with any kind payment method wed like to use, they offer easiness and convenient
payment method for those features, they grab a new market by adding payment method such
as Indomaret, alfamart, and Pos Indonesia. They grab new market because they offered
payment method for those people who dont have Bank account, but they still can buy and pay
for it. For example, in the rural area there so many people having no bank account but as we
know that alfamart, indomart and Pos Indonesia is all over the place so that they can purchase
tokopedias product through this merchant.
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Mobile application, which enables all sellers in Indonesia to manage online stores easily and
to help buyers find the desired millions of products right from Cellphone.
Chapter 6: Conclusion
From the explanation above, we can see that innovation in Tokopedia had create them into one
of the leading platforms of online shopping in Indonesia. Based on existing technology,
Tokopedia able to catch new market with their architectrural innovation like top up service.
Tokopedia also successful in grab new market by conducting radical innovations like providing
new instant payment method. By adding incremental innovations like new features to increase
the service, this could provide easiness in using Tokopedia service. Tokopedia also succeed in
creating disruptive innovation by changing behavior of buyer and seller regarding with buying
and selling activities in online shopping service that Tokopedia provide. These innovations
made Tokopedia capable of being competitive in E-commerce industry against other
competitors like Bukalapak, OLX, and Elevenia. We can say that it is necessary to keep
innovate in order to reach sustain competitive advantage and gain the competitive position in
industry.