Disruptive Technology

Both Amazon and Apple have been extremely successful because they assessed how technology has been used in the past, analyzed how the technology has been utilized, and were able to forecast were the industry was heading.  Both companies had a broad understanding of their customer’s needs, what they, understood why customers where using their products, and continuously worked on innovating their products to better serve the needs of their customers with incremental sustaining innovations and disruptive technology.

Amazons main goal used to be to become Earth’s biggest bookstore. Amazon was very successful in developing its business, management realized soon that Amazon core business was not selling books; it was developing technology that would make sure Amazon was able to stay ahead of its competition.  Amazon started developing its AWS technology which was received very well by developers. However the technology was criticized by Wall-street analysts.  Amazon’s AWS technology was very new to the industry, and can be considered a disruptive technology. The future of the entire industry might change because Amazon introduces its S3 and EC2 products. The main concern for Amazon at this point is to stay ahead of its competition. Amazon was the first; however Microsoft, Google, and IBM are developing similar technology to Amazon.

Apple is another company that through learning from its past was able to become an extremely profitable company. Over the past decade Apple has been able to develop products for undershot customers. Apple is differentiating itself from its competition by being the industry leader in innovative technology; from the IMac, Ipod, and Iphone, to the Ipad. Will Apple be able to keep up with its innovative image and strategy? So far every low cost more mainstream product Apple has introduced did not succeed. What happens if Apple is not able to keep coming up with new and innovative products? What will happen to Apple if its products reach maturity? Looking at the past, competing based on price has been unsuccessful for Apple.

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