When Japanese carmakers entered the existing U. S. automobile market by first offering small fuel-efficient cars, and then leveraging their low-cost and high-quality advantages into high-end luxury segments, they were engaging in:.

Disruptive innovation

Explanation:

Japanese car makers are engaging in disruptive innovation.

Disruptive innovation is a type of theory in business that is related to the entrance or interrupt of a company in an already existing markets.

So here, as we can see that Japanese car makers are also entering in the U.S. automobile market that is an existing market, we can say know that it is also a type of disruptive innovation.

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