Written Assignment Unit 4
MBA Business Administration
University of the People
BUS 5114-01 - MIS and Technology
Dr. Charlotte Barrett
February 22, 2022
Disruptive innovations
The advances in technology have significantly shifted the market. Broadly, there are two types of
technologies they are sustainable technology and disruptive technology. Sustainable technology
is focused on improvements that would allow a firm to increase its operational performance to
gain more revenues or market share (Christensen et al., 2021). These types of technologies are
mostly used by established businesses to gain a competitive advantage and maintain their status.
Disruptive innovations on the other hand revolutionize the market by introducing a new product
or service at an affordable price to a wider market (Twin, 2021). Disruptive innovation makes a
significant impact on the market by creating new demands and new customers. An established
business will be affected based on its capability to cope with the changes. Some businesses could
not make the necessary changes and lost significant market share and profit.
Background of TickTock
Based on Christensen et al., (2021), disruptive innovation has to start from low-end or new-
market footholds. The established businesses have a monopoly on the high-end market hence
these innovations start from the other side of the market. Once businesses that use disruptive
innovations gain momentum they go after the high-end market as well. One of the most
successful and exemplary businesses that incorporate disruptive innovation is a Chinese high-
tech company called ByteDance.
ByteDance officially launched TikTok in September 2016 and currently, its daily activities
exceed 600 million (Peng, 2021). TikTok is an app that allows its users to easily create, edit and
share short videos of music, dances, trick, and other stuff. It helps its users record their daily life
or experiences and share it with the rest of the world. Its target audiences are young adults and
teenagers who want to express themselves and share their experiences. This market group was
not addressed by other platforms and the fact that it's free makes it more accessible.
MBA Business Administration
University of the People
BUS 5114-01 - MIS and Technology
Dr. Charlotte Barrett
February 22, 2022
Disruptive innovations
The advances in technology have significantly shifted the market. Broadly, there are two types of
technologies they are sustainable technology and disruptive technology. Sustainable technology
is focused on improvements that would allow a firm to increase its operational performance to
gain more revenues or market share (Christensen et al., 2021). These types of technologies are
mostly used by established businesses to gain a competitive advantage and maintain their status.
Disruptive innovations on the other hand revolutionize the market by introducing a new product
or service at an affordable price to a wider market (Twin, 2021). Disruptive innovation makes a
significant impact on the market by creating new demands and new customers. An established
business will be affected based on its capability to cope with the changes. Some businesses could
not make the necessary changes and lost significant market share and profit.
Background of TickTock
Based on Christensen et al., (2021), disruptive innovation has to start from low-end or new-
market footholds. The established businesses have a monopoly on the high-end market hence
these innovations start from the other side of the market. Once businesses that use disruptive
innovations gain momentum they go after the high-end market as well. One of the most
successful and exemplary businesses that incorporate disruptive innovation is a Chinese high-
tech company called ByteDance.
ByteDance officially launched TikTok in September 2016 and currently, its daily activities
exceed 600 million (Peng, 2021). TikTok is an app that allows its users to easily create, edit and
share short videos of music, dances, trick, and other stuff. It helps its users record their daily life
or experiences and share it with the rest of the world. Its target audiences are young adults and
teenagers who want to express themselves and share their experiences. This market group was
not addressed by other platforms and the fact that it's free makes it more accessible.
