Creative Destruction of Uber and Kodak in Achieving Profitable Growth

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Creative Destruction
Introduction
In 1942, Joseph Schumpeter used the term “creative destruction” in his book titled Capitalism, Socialism and Democracy. This Austrian economist argued that innovation is one of the biggest sources of market power and that it often leads to creative destruction. Sometimes when the competition among brands and companies is high, several entrepreneurs try to come up with something creative, but this creativity often costs them more than imaginations. If the consumers like their creatively created products, they get a chance to become more powerful and successful than their rivals (Carayannis 183).
In simple words, we can say that creative destruction is a sophisticated process of industrial transformation. It urges businessmen to struggle for their survival and impacts all types of markets, ranging from monopolistic market to the competitive market. It should be noticed that from railroads to airplanes, and from pen and paper to computer devices and mobile phones, everything and every industry is impacted by innovations, but most of those innovations prove to be fruitless and lead to creative destruction. Uber and Kodak are good examples of that (Pacheco et al., 121).
The Creative Destruction of Uber
This company has been around for quite some time but has failed to maintain its reputation. Most recently, Uber came up with new apps and innovative riding deals for its customers. It aimed to facilitate both the drivers and clients but ended up damaging its reputation in the market. For example, in San Francisco and other parts of the United States where the UberPool app was being used, it could not properly focus on ride sharing, so it became difficult for the clients to get rides at affordable prices. In the meant...