DECA Sports and Entertainment Marketing Practice Exam

What are disruptive technologies?

1. New innovations that enhance existing markets

2. Technologies that replicate old communication methods

3. Technologies that fundamentally change existing forms

4. Outdated technologies replaced by newer versions

The correct answer is: Technologies that fundamentally change existing forms

Disruptive technologies are defined as innovations that fundamentally change existing forms or processes, often creating a new market or value network. They typically displace established technologies and can result in significant shifts in how industries operate. This transformation can lead to the emergence of entirely new markets or sectors, thereby altering consumer behaviors and business practices. For example, the rise of digital photography disrupted the traditional film industry by offering consumers more convenient and cost-effective alternatives. Similarly, the advent of streaming services has transformed the way audiences consume media, shifting them away from traditional cable subscriptions. The other options, while they describe certain technological scenarios, do not capture the essence of what disruptive technologies are. Enhancing existing markets refers more to incremental innovations rather than the fundamental change that disruption entails. Replicating old communication methods does not involve a substantial shift and suggests stagnation rather than innovation. Outdated technologies being replaced by newer versions implies a gradual phase-out rather than a dramatic disruption, as disruptive technologies often arise unexpectedly, catching established players off guard.