Answered Essay: McDonald’s practice of home delivery in crowded US cities was first done in Cairo, Eygpt. This is an example of reverse innovation.

True/False

Indicate whether the sentence or statement is true or false.

____   1.   Honda builds cars in Ohio & Alabama. This is an example of off-shoring.

____   2.   McDonald’s practice of home delivery in crowded US cities was first done in Cairo, Eygpt. This is an example of reverse innovation.

____   3.   Blackberry produced a smartphone with a “hard” keypad. This is a disruptive innovation.

Expert Answer

 

1.   Honda builds cars in Ohio & Alabama. This is an example of off-shoring.

Answer: True

Off-shoring is nothing but the practice of moving some of the company’s (Say Honda) processes overseas in order to take advantage of certain aspects such as lower costs. Here, as Honda which has base location as Japan is building cars in Ohio & Alabama, which is based out of US. Thus, this is an example of off-shoring.

2.   McDonald’s practice of home delivery in crowded US cities was first done in Cairo, Egypt. This is an example of reverse innovation.

Answer: True

Reverse innovation which is also known as trickle-up innovation is an innovation practiced in the developing world before getting established in the industrialized world.

In this case, the practice of home delivery which was first practiced in Cairo, Egypt (a developing nation) before McDonald implements it in the crowded cities of United States. So, this is an example of reverse innovation.

3.   Blackberry produced a smartphone with a “hard” keypad. This is a disruptive innovation.

Answer: True

The term disruptive innovation which was coined by Christensen in 90s is a type of innovation which creates new market by disrupting an existing market and its value.

Blackberry as a smartphone when it was produced and sold in the open market, it disrupted the exitsing market for mobile phones of displacing established market leading firms with its new innovative concept. So, this is an example of disruptive innovation.

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