Question

1. Provide a specific example of a company/industry that has faced Creative Destruction.

2. Was innovation simply the cause of the change in the industry or was it a failure for the company to adapt to market changes?

3. How may a networking effect enhance Creative Destruction?

Answer 1

1) The Super 8 movie camera replaced by the Sony VHS camrecorder which is replaced by the digital camera. There was also another example when the Telex machine was changed by the Fax Machine.

2) Innovation occurs when the industry is failed to keep up with the changes in market which means to create the value of the industry they have to take the steps or changes in their methods with the new methods or technology. Which means they have to obsolete their current technology or methods of production to survive in the market.

3) The networking plays a very important for the survival of any industry. Networking considers the investment which pays off in the future. The creative destruction starts for any industry when they have failed to keep their network strong with investors, buyers or with the market.. Networking can give a sufficient support to the industry for their Survival in the market. But if industries are failed to do so they face the destruction.

For example The television industries which have been shut down just after the revolution of LED TVs.