Significance of Disruptive Innovation Theory in Netflix (Research Paper Sample)

Significance of Disruptive Innovation Theory in Netflix
Executive Summary
This report showcases the significance of innovation theory and how it helps different organizations in surviving in the dynamic market. Moreover, the report also depicts how the disruptive innovation theory has helped Netflix in enhancing its competitive position in the competitive industry.
The disruptive innovation theory helps entities in assessing the changes that the company can make concerning the products offered or services rendered in order to maximize customer satisfaction. It is observed that this theory also helps in determining the changing tastes and preferences of the customer.
However, it is to be noted that every innovation theory cannot be successful in every situation. It generally varies from company to company and scenario to scenario. Therefore it is very much essential for the management to decide which innovation theory to implement in order to achieve its desired goals. Now the main question here is how this disruptive innovation theory helps entities in achieving their goals. Hence, in the performed analysis, we have critically analyzed the disruptive theory of innovation and have also shown how the same has helped the "Netflix" company in achieving its desired goals. Moreover, we have also provided a list of recommendations that will help "Netflix" in enhancing its position in the market.
Table of Contents TOC \o "1-3" \h \z \u Executive Summary PAGEREF _Toc102581243 \h 2Introduction PAGEREF _Toc102581244 \h 4Theory Description PAGEREF _Toc102581245 \h 4Disruptive innovation theory PAGEREF _Toc102581246 \h 5Theory Application PAGEREF _Toc102581247 \h 7Netflix as a Disruptor PAGEREF _Toc102581248 \h 8Future Development PAGEREF _Toc102581249 \h 9Conclusion PAGEREF _Toc102581250 \h 12Reference List PAGEREF _Toc102581251 \h 13
Introduction
Business innovation can be described as a plethora of steps that business enterprises consider launching their product, service, or process in order to bring a positive change to the workplace. Here the involved steps include modifying the existing process, product, or service as per the changing taste and preferences of customers or completely starting from scratch. The theory of innovation generally describes the design and speed at which new innovative ideas, strategies, products, etc. spread throughout the population. Furthermore, the key component of the innovative theory includes the innovators, adopters, majority entity, etc. It is to be noted that innovative theory plays a crucial role in the growth and development of an entity as by implementing this theory, entities are able to grow and enhance their position in the dynamic market. However, it is very much essential on part of the entity to select the correct approach for the business concerning the scenario, in which they are entitled to perform because every innovation theory is not the same, and the application of any theory would not help the company in achieving the desired goals. The theory of innovation that has to be applied varies from company to company depending upon the goal, structure, and culture of the organization. In light of the above discussion, research work will be performed which will critically discuss the disruptive innovation theory. The reason behind selecting this theory for the research work is its significance. It is observed that this theory helps superiors in identifying the rising threats concerning the workplace as well as the changing taste and preferences of the customer. Furthermore, the performed research work will also discuss how this theory has helped "Netflix" in enhancing its position in the dynamic market. Towards the end, a list of recommendations will also be provided which will help "Netflix" in enhancing its profit and position in the dynamic market.
Theory Description
Innovation theory plays a crucial role in the growth and survival of the organization. It helps entities in assessing the changing taste and preferences of the consumer, which as a consequence helps them in maximizing customer satisfaction (Al-Imarah and Shields, 2019). In light of the above description, one of the significant innovation theories, i.e. disruptive innovation theory is discussed