Can you map the different kinds of innovation in the case study? Which were incremental and which radical/discontinuous? Why? Give examples to support your answer. One of the innovations in this case study is e-tailing. E-tailing or Electronic retailing is a channel where business-to-business and business-to-consumer sale goods and services through the internet in which revenue can come from the sale of products and services, through subscriptions to website content, or through advertising (Investopedia). In this case study, the ‘e-tailing’ channel obtained the latest hard copy CD’s you can imagine. CD’s were one of the greatest technologies where one can listen to music and enjoy tunes. Although when CD’s were a big hit, most of the albums were purchased through online. As technology became more advances the music innovations increase and tailoring of the music purchasing service and demonstrate some of the ‘richness/reach’ economic shifts of the new Internet game (Tidd 46).
It also changed the distribution of CD’s by converting music to an MP3 format in which files can easily be moved through the internet quickly and be shared amongst other users. Another great thing about MP3’s, Motion Picture Experts Group (MPEG), used a powerful algorithm for managing one of the big problems in transmitting audio music files compression. Normal audio files cover a wide range of frequencies and are thus very large and not suitable for fast transfer across the Internet – especially with a population who may only be using relatively slow modems. With MP3 effective compression is achieved by cutting out those frequencies which the human ear cannot detect with the result that the files to be transferred are much smaller (Tidd 47). An incremental innovation is a series of small improvements to an existing product or product line that usually helps maintain or improve its competitive position over