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Problem

Compare and contrast a low-end versus a new-market disruptive strategy.

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Disruptive Strategy

Disruptive innovation means a product or service which is not as good as currently available products or services. Disruptive strategy has several other benefits of these products and services like they are easy to use, more convenient and economic to attract new customers.

Step 2/3

Types of Disruptive Strategy

• Low- End Disruptive Strategy- Targeted customers of low- end disruptive strategy are those customers who want to buy a good product but either at lower or discounted price.

The organization should be able to produce the product at lower price which will be beneficial for both the organization and the customers. Discounted or lower price will attract the customer at the low end of the market while increased sale will maximize the profit of the organization.

After being lower cost the performance of these products should meet all the requirements of low- end of market.

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• New Market Disruptive Strategy- Targeted customers are non-consumers i.e. those customers who were not able to buy products because of money and use them because of lack of skills.

Initially the profit can be less but later on it will definitely going to be increase.

The performance of the new products or services is definitely enhanced specially in terms of convenience and simplicity.