Netflix as a Disruptive Technology

  • Disruptive technologies are defined as a technology that starts “by gaining a foothold in the low-end (and less demanding part) of the market, successively moving up-market through performance improvements, and finally displacing the incumbent’s product.”

  • By Netflix introducing itself onto the market in 1998, it was classed as a disruptive technology because when they joined the market they put other businesses under extreme pressure. With Netflix on the market other companies had to come up with a ways to keep their customers and also gain new ones.
  • They disrupted Blockbusters, Wal-Mart and many other companies.

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