Disruptive Technologies: An Analysis of Disruptive Innovations


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A presentation as a response to Amazon + Nintendo business cases. Hope you enjoy it. If you have any questions, please leave a comment.

Disruptive Technologies: An Analysis of Disruptive Innovations

  1. 1. Disruptive StrategiesAn analysis of successful innovations <br />By ErtiDhamo<br />Management of Information Systems<br />Fox School of Business, Temple University<br />Philadelphia PA<br />
  2. 2. Abstract<br />In this presentation you will see:<br />How Amazon.com was founded<br />The initial strategies towards success<br />The business rationale behind Amazon Web Services<br />Also:<br />Nintendo’s struggle with competition in the entertainment industry<br />Nintendo’s product development strategy<br />The positions of Nintendo’s products.<br />
  3. 3. The “Walk”<br />Lets begin to analyze the strategic steps of each company<br />
  4. 4. Foundation of Amazon.com<br />Originally founded by Jeffrey Bezos in 1995<br />Company Aim: “Become Earth’s biggest bookstore”<br />Innovative website<br />Personalization<br />“One Click<br />Customer Reviews<br />
  5. 5. Financial Figures<br />
  6. 6. Current Value<br />As of 2009, Deutsche Bank estimated Amazon.com to be worth: <br />$225 Billion <br />
  7. 7. Business Strategy of Amazon<br />“Grow fast, even at expense of profitability”<br />Invested heavily in Technology<br />Web site Innovations, E-Commerce infrastructure<br />Entrepreneurial Culture<br />Small teams focusing on long term goals<br />Notable Expansions<br />Clothing, digital music, and of course The Kindle<br />
  8. 8. Towards the “Cloud”<br />Andy Jassy<br />General idea: “More access to core functions, more revenue for Amazon”<br />The Associates<br />Large group of advertisers of Amazon products<br />Main function: Refer sales to Amazon in exchange for commissions<br />The Developers<br />Require more access to Amazon’s core features<br />Vision: The Internet as an Operating System<br />
  9. 9. Establishment of Major Services<br />
  10. 10. Nintendo: An overview<br />Originally founded in 1889 in Kyoto, Japan.<br />1991: First gaming platform – Super NES<br />1996: Launched Nintendo 64<br />2004: Launched Nintendo DS<br />November 2006: Launched the highly successful Nintendo Wii<br />
  11. 11. Incentives toward change<br />
  12. 12. Simple Strategies<br />Reach out to non-gamers in order to create a bigger market<br />No boundaries<br />Age, gender, or gaming experience<br />Easier games to play<br />Easy-to-play controller<br />Real life game scenarios rather than fantasies<br />
  13. 13. Introduction of the Wii<br />
  14. 14. Disruptive Strategies of Nintendo<br />Development of game titles was done in-house<br />No third party delays<br />Development of software in conjunction with hardware requirements and vice versa<br />“Exergaming” – Physical Exercise along with gaming<br />Recommended by doctors to patients<br />WiiWare – Established network where freelance developers can sell their own game titles<br />
  15. 15. Disruptive Innovation: Getting The Point<br />What consists a disruptive innovation?<br />Production/Usage costs<br />Opening of new markets<br />Ease of manufacturing<br />Types of disruptive innovations<br />Low End disruptions<br />Low cost innovations that benefits low budget customers<br />New Market disruptions<br />Introduction of a product that is not used by a large market share<br />
  16. 16. Amazon and Nintendo: Back-to-Back comparison of disruption strategies<br />Amazon AWS <br />Low End Disruption<br />Transition of web hosting into virtual “cloud”<br />Low cost charges<br />Instant support when needed<br />Elasticity of host systems to fit consumer needs<br />Nintendo Wii<br />New Market Disruption<br />Increasing market share<br />Low cost of manufacturing<br />Simplicity of use<br />Incentives for little start-up developers<br />