PC vs Tablet and Disruptive innovation

     

The relevance and competitiveness of different technological approaches can change with respect of different markets overtime and customers and financial structural companies colour heavily the sorts of investments that appear to be attractive them, relative to certain types of entering firm( Christensen et el , 1997).Disruptive technology brings to a market a very different value proposition that had been available previously.Disruptive technology generally under perform established product in mainstream market.Product based on disruptive technologies are typically cheaper,smaller,and easy to use.(christensen et el ,1997).For example now-a-days disruptive technology is Tablet is cheaper than  and smaller than disrptee technology laptop or desktop PC. Second concept of disruptive technology can progress faster than demand market.The companies in competitive market their efforts to provide better service and products than their competitors suppliers often overshoot  their market.They give customer more than they need or ultimately are willing to pay for.More importantly the disruptive technology may under perform today may be fully performance competitive in the same market tomorrow.Last element is , a disruptions  initially embraced by the least profitable consumers in market. Although , most companies  with a practised discipline of listening their best consumers and identifying new products that promise greater profitability and growth are rarely able to build a case for investing in disruptive technologies until its too late.(Christense et el, 1997)

              Disruptive innovation is a powerful means of broadening and developing new markets and providing new functionality, which, in turn, may disrupt existing market linkages (Adner 2006; Charitou and Markides2003; Christensen 1997; Christensen and Bower 1996; Christensen and Raynor 2003;Danneels 2004; Gillbert 2003; Govindarajan and Kopalle 2006) In support of disruptive innovation strategies, Christensen and Raynor point out that the main difference between disruptive innovation and a sustaining strategy is based on the circumstances or context of innovation: In sustaining circumstances— when the race entails making better products that can be sold for more money to attractive customers— we found that incumbents almost always prevail. In disruptive circumstances— when the challenge is to commercialize a simpler, more convenient product that sells for less money and appeals to a new or unattractive customer set— the entrants are likely to beat the incumbents. This is the phenomenon that so frequently defeats successful companies. It implies, of course, that the best way for upstarts to attack established competitors is to disrupt them(Christensen and Raynor 2003, p. 32). Turning to tablets proper, smaller and cheaper is the order of the day — with consumers’ preference for the 7-inch form factor causing continued price decline in premium tablets.  The raft of cheaper priced tablet hardware — from the likes of Amazon with its Kindle Fire line and Google with its Nexus-branded slates — is clearly helping to underpin overall tablet growth, taking share away from Apple’s more expensive iPad line.When disruptive technologies enter a market, they offer a value proposition that is impossible to dismiss.Customers move to the new solutions and change the balance of the industry. Market forces do not operate to maintain the dominance of existing players; rather they move to meet the needs of the maximum number of customers

       Technology innovation has often been characterized as either radical or incremental(Christensen and Raynor , 2003) [9]. Incremental innovation refers to changes that “build on and reinforce the applicability of existing technology.” These changes strengthen the value of existing technology and the products that use them by making the products more reliable, simpler to use, lower in cost, or accessible to a larger customer base . For example, Mikako Kitagawa, a Gartner analyst, said sales of low-end PCs in mature markets were eaten by  low-cost tablets and she also added that in economically disadvantaged markets,  many people buy a cheaper tablet which is the first computing  device now a days.

        Clayton M . Christean pointed out four key points( of new growth business and transformation. In flawed paradigm always  Listen to your best customer and market segment  he explained that if companies listen to their  best customer  is tremendous value.Feedback from demanding consumer  can help to earn attractive margin , beat competitors and creat competitive advantage. Customer that only focus on their consumer end up new products .On the other hand sometimes depend on consumer behaviour.When consumer find that they need to get the job done they hire products. Most of the companies sensed the "get the job done" and they found a way to help them and make life esaier.For instance , first it was desktop and then pc revoulation begun when xerox , IBM, Commodore entered the market and computers became omnipresent in offices and eventually homes. Innovations like the “Graphical User Interface,” which allows users to select icons on the computer screen instead of writing complicated commands, and the computer mouse made PCs even more convenient and user-friendly. Now a days laptop, smart phones and tablet computers allow consumer to have a PC wherever they will go .It seems that recent year in 2013 pc market get affected on their traditional sales by android tablets, smart phones. Mikako Kitagawa, principal analyst stated that because of consumer shifting pc to tablet it's continued to decrease in mature as well as rising market for installed base PCs. And also added that customer attracted by reasonably priced android tablet in promising market and as additional device in grown-up market. IDC pointed out that PC is going to decline in next ongoing year because of fragile economy or being selective method consumer looks for option. On the other hand Consumer wants something that can be easily done and easy to carry, they switch easily. In today's economy if a tablet can tackle 90% of computing, consumer can postponed to buy new laptop. VP Loren Lovedre stated in press that everyday computing like emails, accessing web, variety of apps it doesn't need a lot of storage. So  of the consumer switch laptop or desktop to tablet and create the market competitive and lead to innovation and create disruptive innovation.

        In order to maintain organisational dynamism the companies build portfolios of real option (I .Mcmillan and R.G. Macgrath , 2000).For future to keep opportunity real options are limited investment for disrupted technology.Three different kind of option identified by Mcgrath and Macmillan portfolios. In.In posiotion option where the market is well known but the technology are still uncertain. On the other hand the company may have a strong technology but uncertain about appropriate market, in that case which markets are best it would bet on several scouting options.At last company might want some stepping stone options for future to lead something more promising and even though they do not turn profit it should provide some valuable opportunity(I . Macmillan and R.G Macgrath , 2000).From Macgrath and Macmillan options perfet example is toadys Dell Inc company for selling PCs.Dells PC are shrinking at a time when people are buying tablet instead.Dell sacrificed their margin profit by reducing their sales products to keep momentum going.The company plans to invest their money on tablet market after the founder and chief executive Michael dells $25BN buyout offer.offer. Despite the rapid decline in pc market the company reminded focus on making tablet in emerging market.