Question 1

In the challenging business, a disruptive innovation is a development that creates another market
and esteem organize and inevitably disturbs a current market and esteem arrange, moving set up
market-driving firms, items, and coalitions. This is stood out from "supporting developments," the
new innovations and changes created by occupant organizations trying to remain important with
clients. These advancements can be important as well, however by and large, items and
administrations created thusly turn out to be excessively complex, excessively difficult to reach,
or too costly to even consider having any genuine enduring force. Likewise, clients look to more
affordable, now and then extreme choices to address their issues. The characterizing attributes of
disruptive trend-setters are bringing down gross edges, littler target markets, and items and
administrations that are regularly less complex than their counterparts. The issue with applying
this term to any new business that challenges an industry is that it undermines what genuine
disturbance is. It will in general draw in more regard for new businesses that are as of now getting
consideration, while the genuine disruptors are gradually climbing the step somewhere else,
unnoticed by the business monsters they're intended to supplant.

Netflix -- and other streaming services -- are currently to disrupt the entertainment industry.
They’ve all but slayed physical video rental stores, and are slowly allowing more and more
customers to cut their cable subscriptions. OTT options like Hulu and Pluto TV developed
seemingly out of nowhere, as a low-cost substitute to conventional subscriptions, and when they
caught on, customers couldn’t help but think about their media in a new way. When Netflix first
looked, it only attracted to a few customer groups: “movie buffs who didn’t care about new
releases, early adopters of DVD players and online shoppers. This transformed, however, with the
rise of video streaming. Already a player on the market, Netflix had the advantage of moving
upwards. Netflix was capable to appeal to Blockbuster’s core audience by providing, a broader
selection of content with an all-you-can-watch, on demand, low-price, high-quality, highly
convenient approach.

Artificial intelligence - This is a special type of intelligence that is displayed by computers and
other machines. It’s a flexible agent that remarks its environment and takes the necessary action
mandatory for the success of that particular phenomenon. Artificial intelligence is used when
machines duplicate the cognitive functions of the human brain in learning and solving problems.
As machines develop increasingly capable, other facilities are detached from the definition.
Although this area has a long history, professionals in the field are getting ever closer to attaining
artificial intelligence. The way we work has vitally shifted thanks to AI, or the use of computers
to accomplish tasks usually performed by humans. While it may not always involve fundamental
changes, AI can easily identify inefficiencies that humans cannot, enlightening the ways in which
businesses operate. Businesses can benefit from AI through the documentation of inefficiencies
and the automation of systems.

Autonomous vehicle - This technology comprises automated cars and drones. It denotes to vehicles
or drones that could operate and self-drive in many circumstances using advanced sensors such as
LIDAR and other systems of communications from machines. According to an article issued in
Times Magazine in 2013, some of the new users of these vehicles will be farmers, architects, and
even real estate agents. These fleets will ultimately offer different types of vehicles, for example
single or multiple occupants. This will slowly remove the need for car hire and taxis, as well as
affecting methods of public transport. Couple this with electric vehicles (which, parenthetically, is
exactly what Tesla Motors is doing) and suddenly there’s augmented efficiency and less pollution
due to lower fuel consumption. A deterioration in sales of petrol and diesel will obviously have a
huge effect on companies in the gas and oil industries. Autonomous cars will disrupt whole
physical environments, at least in city spaces. Cities will no longer need parking lots, taxi services
or even public transport, because driverless fleets will substitute them all.
Question 2

Dollar Shave Business Model

The company stood itself as a club, focused on the actual problems which men faced while
purchasing a razor, and solved that situation effectively and efficiently. Dollar Shave Club works
on a trading model. It obtains goods in bulk from other companies (eg. razor from Dorco USA)
and sells them at a low profit. The company acts as a club whose followers are subscribers to their
products. DSC believed in investing in customers. Hence they don’t charge profit (and even incur
losses) to convince the customer to be a part to the club. A customer becomes a member of the
club when he buys the first product from the company. Hence the strategy of ‘just $1 for any
product’ which lets the customer pick any product for just $1 when they buy from the club for the
first time. It’s a simple model of making profit by selling the products at higher price than it was
bought for. The subscribers become the members of the club which are delivered products every
month.

Harry’s Shave Business Model

Harry’s has based their industry disruption on a shift to B2C, dis-intermediating sales channels
and membership-based revenues. Harry’s activation strategy, typical customer relationships —
 getting people to try the product for the first time is based on a uniform “starter” package the
company offers, charging customers only on the cost of shipping. Harry’s majorly relies less on
the subscription model by including other business strategy such as transactional sales (i.e.,
revenue streams) for anyone who doesn’t want the recurring supply of product.

In order to approach or penetrate the sales and growth of the both unique business model and not
forgetting the retail business like Gillette and Shick, business model would have to cover the
overall market. The business model has to take “control” of the traditional business model by
building on a foundation of customer experience in the buying process using humor and
sophistication
The suggested business model as below
Question 3
The revival of Lego has been welcomed as the greatest turnaround in corporate history. From its
founding in 1932 until 1998, Lego had never posted a loss. By 2003 Lego was in big trouble. Sales
were dropping almost 30% year-on-year and it was with $800m in debt. An internal report exposed
it hadn’t added anything of value to its portfolio for a decade. Consultants rushed to Lego’s Danish
HQ. Lego had no clue which items were gainful, in light of the fact that they were just checking
outcomes by geographic zones, not by product offerings. Product offering productivity was
discoverable, however just through diligent work that had not been sought after beforehand.

Lego was advised for diversification. Lego took from Mattel, home to Fisher-Price, Barbie, Hot
Wheels and Matchbox toys, a company whose portfolio was broad and varied. As the first step for
diversification, it introduced jewelry for girls and Lego clothes. It started a theme parks that cost
£125m to build and lost £25m in their first year. It initiated its own video games company from
scratch, the largest installation of Silicon Graphics supercomputers in northern Europe, in spite of
having no experience in the field. Lego’s toys still sold, predominantly tie-ins, like their Star Wars
and Harry Potter-themed kits

In 2015, the still privately owned, family controlled Lego Group overhauled Ferrari to become the
world’s most powerful brand. It declared profits of £660m, making it the number one toy company
in Europe and Asia, and number three in North America, where sales surpassed $1bn for the first
time. From 2008 to 2010 its profits quadrupled, exceeding Apple’s. Indeed, it has been called the
Apple of toys: a profit-generating, design-driven miracle built around premium, instinctive,
covetable hardware that fans can’t get enough of.
Question 4

At the point when a disruptive development undermines the market there are gainful
methodologies the company can adopt and non-profitable strategy. Tragically, very numerous
associations pick the non-gainful methodology, which is to denies that the disruptive innovation
will influence you advertise at all and proceed with the same old thing. Furthermore, that typically
does not work.

Far-sighted companies, upon realizing that their market is likely to change drastically as a result
of disruptive innovation, most typically they should change their products in order to continue
selling to the same marketplace. Taking into consideration Kodak and Leica, above, as well as
Canon, Nikon, Hasselblad and many other well recognized names from the world of photography.
They have all developed and now market digital cameras and related products. Most of these
companies, however, suffered during the transition

Taking the new technology as a challenge. The companies have to identify numerous opportunities
that is in the market and use them. And through innovation they can be diversified into a number
of profitable activities. Moreover, this diversity will better protect them against future disruptive
innovations in any one of those industries. As an example of using their expertise to develop new
products,

For an example , Fuji realized that the cellulose triacetate which forms the basis for film can also
be used as a protective coating on flat panel displays – a growing business based on another
disruptive innovation. It was a small operational step to adjust their production to manufacture
this protective coating. As a result, Fuji generated an operating income of nearly US$1 billion for
the fiscal year ending in March 2007, a 60.5% increase over the previous year. It is clear that Fuji’s
two-prong approach to surviving disruptive innovation was better than that of most of their
competitors. Of course this was not entirely without pain. Fuji suffered financially from the
introduction of digital imagery and was force to lay off some 5,000 employees. And part of the
reason that their 2007 increase was so high was because 2006 was not a particularly strong year
(as a result of disruptive innovation).