Implication of Creative Destruction

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Creative destruction
Developed by Joseph Schumpeter, the concept of creative destructions refers to the process of creating something new that leads to the failure of something that existed before. In a business context, practices such as outsourcing and downsizing are creative destruction measures since they describe unpopular cost-cutting measures. The implication of creative destruction is that although the actions may be injurious, they will enable a transformation of the business through innovation. However, not all innovations that result from creative destruction end up being successful.
Kodak and Comcast are companies that have been victimized by creative destruction. Kodak invented the digital camera in 1972 and used it to compliment it sales. However, the introduction of Smart-phones with efficient cameras took the market by storm. Kodak suffered immensely and it has never recovered. On the other hand, due to technology, video provi...