Asked by Kwama Kenyatta on May 31, 2024

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Samantha, the technical lead at Marrium Infotech, is against the management's decision to try market-creating innovations instead of performance-improving or efficiency-enhancing innovations. The management justifies its view by saying that this would create a new market and enhance the company's growth. Which of the following statements can Samantha use to justify her viewpoint?

A) The market-creating innovation will fail to create a new class of consumers.
B) The market-creating innovation results cannot be tested in the market before the product's release.
C) Implementing market-creating innovations will lead to a decrease in the company's revenue.
D) Implementing market-creating innovations will prevent a company from reaching prospective customers.

Market-Creating Innovations

Products or ideas that meet the needs of a group of potential consumers whose needs have not been met before.

Management's Decision

Decisions made by an organization's management, guiding the direction, operations, and administrative actions of the company.

  • Distinguish between different types of innovations: performance-improving, efficiency-enhancing, and market-creating innovations.
  • Identify the reasons and benefits companies have for choosing specific types of innovations.
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SS
sonia sodembaJun 02, 2024
Final Answer :
B
Explanation :
Market-creating innovations often involve introducing entirely new products or services for which there is no existing market, making it challenging to test their viability or demand before release. This uncertainty can be a significant risk, as opposed to performance-improving or efficiency-enhancing innovations that build on existing markets or technologies.