Research On The Disruptive Innovation Of Internet Industry

Disruptive innovation was put forward by Harvard University Business School professor Clayton M. Christensen. Different from maintenance innovation which the incumbent enterprises are continuously improving the performance of the existing products in the mainstream market. Disruptive innovation is to attract a large number of consumers with low end market and new market by introducing different products and services (simple, convenient and cheap). Disruptive innovation is an important means for small and medium-sized enterprises to achieve industrial breakthrough, but also the primary strategic choice of the latecomer firms to catch up with the incumbent enterprises, The theory can effectively guide and promote the innovation behavior of enterprises, To guide the scientific and technological innovation and industrial transformation of the developing countries, and to improve the international competitiveness, So its application research has important significance to the development of small and medium-sized enterprises in our country.In recent years, with the rapid development of China’s Internet industry, The competition between Internet companies is becoming more and more fierce, and the living environment of enterprises has changed, Due to the resources, scale and other aspects of the development of enterprises have a big gap with the incumbent, so in the developing countries of the Internet, the development of enterprises are facing fierce competition and the fate of being eliminated. However unexpected is that many large Internet companies are in the strength of the lost business, for example, The global C2C industry giants eBay has been out of China’s e-commerce market by Taobao, Kaspersky and other foreign antivirus vendors is successfully defeated by Qihoo 360 antivirus software. Disruptive innovation is the important theories in the research, Disruptive innovation of the latecomer firms in the traditional industries has attracted great attention of the academic circles, but this phenomenon has not been the corresponding concern and attention to the Internet industry.In this paper, based on the theory of grounded theory and multi case study method, this paper analyzes and discusses the problem of disruptive innovation in the Internet industry, mainly from the following aspects.First of all, analyze the development advantage of disruptive innovation of the Internet industry, namely the cost advantage and the advantage of revenue. The marginal cost of the Internet industry almost zero and Metcalfe’s law determines the disruptive innovation strategy is more applicable to the Internet industry, The characteristics of the Internet industry in China’s Internet companies to provide the opportunity to use disruptive innovation to obtain ultra conventional growth. The characteristics of the Internet industry provides the opportunity to use disruptive innovation to obtain ultra conventional growth for China’s Internet companies.Secondly, this paper uses multiple case study methods, respectively, from different areas of the Internet industry to select the case as the research object, and finally to carry out the 5 typical Internet companies to carry out disruptive innovation as an example, Selected cases from different areas of the Internet industry as the research object, Finally, select 5 typical Internet companies to carry out disruptive innovation as an example, Take the data encoding method of grounded theory,take an exploratory case study on the internal mechanism of disruptive innovation in the Internet industry, Aims to answer how the Internet companies to carry out disruptive innovation? what is the model and the internal mechanism of this innovative process? In order to further enrich the theory of disruptive innovation and practical application. It is found that the special cost structure, the network value law and the Internet market environment are the prerequisite for the success of the disruptive innovation in the Internet industry; Internet companies through the disruptive technology (technology of structural damage and destruction of the technology function) and business models (the new value proposition, new profit model, new value chain) collaborative innovation to achieve the destruction of the Internet market. On the basis of this, the theoretical model of disruptive innovation in the Internet industry is constructed.Finally, based on the coding analysis by Grounded theory and the theoretical model, the characteristics of the Internet industry disruptive innovation, development path and conditions and other general rules are discussed in this paper. The characteristics of disruptive innovation of the Internet industry is analyzed from the products, corporate profits and competitive strategy in three aspects; Analyze the disruptive innovation path of the Internet industry, Namely, using the long tail theory and starting from the market segments, constructing the new value of the free and easy to occupy the market, constructing the multilateral platform value network and the new profit model, and obtain the sustainable development of the enterprise with the soft supporting assets. The conditions for the successful development of disruptive innovation in the Internet industry are discussed from four aspects, Namely, the corresponding field has a large enough potential market, the supply of similar products in the market is greater than the demand of users, Does the external environment support the development of disruptive innovation patterns, disruptive technology that is suitable for the Internet industry.To explore and analyze the internal mechanism and general rule of disruptive innovation in the Internet industry and to construct the theoretical model have form the main content of this article. The study of this paper provides a useful reference for the development of disruptive innovation strategy in the Internet industry, But in this paper, the research of disruptive innovation in the Internet industry is still in the initial stage of exploration, but also need to continue to carry out.