Companies fail to innovate because they do not expand their reach to new and developing markets with disruptive Innovation. Innovation is when companies implement new processes, ideas, services, or products with the goal of boosting the bottom line. Disruptive innovation takes innovation to a next level by capitalizing on a small growing market which starts off with little profit margin but will grow over time to become profitable ultimately disrupting the existing market.

For my literature review I compiled and explained my research into four topics. I first told about its history dating back to the author Clayton Christensen and his influence in the space.  Then I broke my research into four topics industry, investment, psychology, and management. Industry pertains to individual fields such as medicine as each have different things that regulate their market. For investment I focused on angel investors and how they help small markets and even smaller companies grow. For psychology,  I examined the disruptive ability of workers. In management, I studied how large companies can affectively use leaders to promote disruption. 

Read my literature review here. 

Case Studies: Netflix & Yahoo

For Disruptive Innovation to be fully understood an example is needed. In  these case studies I examined two companies, including one that showcased the success of disruptive innovation and one who failed to be disruptive. Netflix disrupted e-commerce first by shipping DVDs and then by creating the streaming market. As an example of a failure, I examined Yahoo which started disruptive with a free internet database but it did not continue this path. I showed how it stopped investing in small markets and instead doubled down on advertising and other costs which lead to Google overtaking the market.