Essays on Disruptive Innovation and Value Network Analysis Case Study

Download full paperFile format: .doc, available for editing

The paper "Disruptive Innovation and Value Network Analysis" is a perfect example of a case study on business. The business world is being conducted in a different way thanks to the digital age. The digital-born businesses are moving in towards digital immigrants and are behaving in different ways towards the customers. More importantly, the digital business model has enabled these businesses to become more responsive and innovative. This case study report focuses on houzz. com in terms of its products, innovation, economic characteristics, data aspects, and IP’ s challenges and opportunities. 2.0 Overview of houzz. com Houzz. com is an online platform for home design and remodeling that brings together home professionals as well as homeowners in an online community that is visually unique.

The platform was founded by Adi and Alon who sought to reduce the problems associated with relying on referrals and magazines for home professionals in order to make a dream home. Therefore, Houzz was created to help people get access and also post photos of beautiful homes. The main objective of Houzz is to offer the users the right construction and design professionals and also to connect them with other users.

At first, Houzz was initiated as a side project but currently, it has become a community of over 40 million home improvement professionals, homeowners, and enthusiasts of home design across the globe (Houzz, 2016). Houzz has developed visual, social as well as mobile technologies that enable professionals and homeowners to work together to construct beautiful homes. Besides that the site enables the users to share ideas with design professionals, friends, and family members, or they can utilize the private virtual ideabook to save the ideas.

After gathering ideas suitable for their home, the users utilize the Houzz application to search for home improvement contractors, interior designers, and architects within their residential area. The platform also provides various products such as holiday decor, pet supplies, furniture, lighting, kitchen & dining, housekeeping & laundry, and many others. The registered users can utilize their mobile devices to purchase furniture as well as home accessories at houzz. com. 3.0 Disruptive Innovation and Value Network Analysis 3.1 Disruptive Innovation Disruptive Innovation can be described as the process through which a product/service initially takes root in the market’ s simple applications and later moves relentlessly up in the market, ultimately displacing competitors who have been long-established in the market.

Specifically, disruptive innovation changes a historically inaccessible, complex, and expensive product into one that is available, less complicated, and affordable to many people. Houzz is a disruptive innovation because it has two crucial factors, disruptive circumstances and value networks that are overlapping. The platform is a disruptive innovation because it serves non-served customers, people with no adequate funds, or the ability to remodel or design their homes using traditional channels.

The overlapping value-networks aspect of Houzz is attributed to the fact that the criteria of performance are the crucial criteria utilized by the customers. The platform’ s value-network of has grown to overlap the traditional value-network. As mentioned by Enders et al. (2006) this connotes that although at the start, people satisfied by disruptive innovations are traditional value networks low-end customers, they eventually turn out to be very attractive for other customers such as those in the old value-network seeking to switch to the new one.

Houzz has grown rapidly; thus, changing the perspectives of the customers regarding the brand as well as the online marketplace. At first, Houzz was operating unnoticed below the radar to the extent that it was too late for the competitors to respond to its ascendency. Now with over 40 million users, the site is not only authentic, but also a challenger daring, and vibrant. In addition, the brand has generated consumer advocates, who evangelize houzz. com through testimonials.


Dholakia, N., & Zhang, D. (2004). Online Qualitative Research in the Age of ECommerce: Data Sources and Approaches. Qualitative Social Research , 5 (2), 1-12.

Enders, A., Jelassi, T., König, A., & Hungenberg, H. (2006). The relativity of disruption: e-banking as a sustaining innovation in the banking industry. Journal of Electronic Commerce Research , 7 (2), 67-77.

Giangreco, E., Marasso, L., Chetta, V., Fortunato, L., & Perlangeli, C. (2014). Modeling tools of service value networks to support social innovation in a Smart City. IFIP Electronic Government (EGOV, (pp. 206-215). Dublin.

Houzz. (2016). ABOUT HOUZZ. Retrieved from Houzz:

Pei-Yu, & Hitt, L. M. (2001). Measuring Switching Costs and the Determinants of Customer Retention in Internet-Enabled Businesses: A Study of the Online Brokerage Industry . Information Systems Research , 13 (3), 255 - 274 .

Yen, Y.-S. (2011). How does perceived risks complement switching costs in e-commerce? African Journal of Business Management , 5 (7), 2919-2929.

Download full paperFile format: .doc, available for editing
Contact Us