Disruptive innovation theory describes how:

A Large companies always win

B Simpler, cheaper innovations initially serve overlooked segments then eventually overtake established products

C Only technology companies innovate

D Innovation is always expensive

✓ Correct Answer: Option B

Christensen's disruptive innovation: new entrants target low-end or new markets with simpler solutions, then improve until displacing incumbents. Incumbents often miss the threat.

💡 Why is B) the correct answer?

The correct answer to the question "Disruptive innovation theory describes how:" is Option B: Simpler, cheaper innovations initially serve overlooked segments then eventually overtake established products.

The other options — A) Large companies always win, C) Only technology companies innovate, D) Innovation is always expensive — are incorrect for this Pre-MBA Exam Prep question. As explained above: Christensen's disruptive innovation: new entrants target low-end or new markets with simpler solutions, then improve until displacing incumbents. Incumbents often miss the threat.

📚 About This Pre-MBA Exam Prep Practice Question

This 3-level Pre-MBA Exam Prep question from the Strategy topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free Pre-MBA Exam Prep practice test or use flashcards for spaced repetition review.

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Disruptive innovation theory describes how:

✓ Correct Answer: Option B

📚 About This Pre-MBA Exam Prep Practice Question

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