Abstract

Earlier research has focused on the single dimension of disruptive innovation that originates in the low-end market. Disruptive innovators tend to focus on targeting niche markets at the lower-end of the economic ladder, providing alternatives to existing products. Disruptive innovators that originate in low-end markets are inferior to existing products. However, they improve over time to attract mainstream customers and take over incumbents. This single dimension has ignored the disruptive innovation that originates in the high-end market in terms of superior products. This research focuses on the latter context and the notion of consolidating high-end disruption into disruptive innovation frameworks. High-end disruptive innovation is successful when escalated affordably. Customers cannot afford superior products in the high-end market, though with passage of time they achieve affordability and attract mainstream customer to disrupt the market. In both cases, market incumbents ignore disruptive innovation. They enjoy profit margins at the expense of low-end disruptors and overlook market volume at the cost of high-end disruption. Initially, in both cases, incumbents react by driving profitability through sustaining innovations.

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