We are Disrupting the Market....Not Really!
Early in 2022 I spent a couple of busy months doing some post graduate study through the Harvard Business School on the topic of "Disruptive Strategy". So many companies feel they are disrupting their industry by being niche, agile and innovative only to discover that as they grow and scale they face the same challenges as their more established competitors. They are not actually disruptive at all.
Disruptive strategy, first introduced at Harvard Business School in the 1990s, is a concept that has had a significant impact on the business world. The idea behind disruptive strategy is that companies can achieve success by targeting and serving overlooked or underserved segments of the market, rather than competing directly with established players.
The concept of disruptive strategy was first introduced by Clayton Christensen in his 1997 book, "The Innovator's Dilemma." In it, Christensen argued that established companies often miss out on new opportunities because they are too focused on serving their existing customers and protecting their current business model. He argued that, instead, companies should look for ways to create new markets by introducing products or services that are simpler, cheaper, and more accessible than what is currently available.
Over the years, the concept of disruptive strategy has evolved and been applied in various ways. One popular example is the rise of digital platforms, such as Uber and Airbnb, which have disrupted traditional industries by creating new ways for consumers to access goods and services. These companies have also disrupted traditional business models by using technology to connect customers directly with providers, cutting out intermediaries and reducing costs.
However, not many companies have been successful in truly applying disruptive strategy. Some have failed to identify new opportunities or have been slow to adapt to changing market conditions. Others have struggled to scale their disruptive business models or have been outmaneuvered by established players.
Despite these challenges, the concept of disruptive strategy remains a powerful tool for companies looking to achieve growth and success. Today, businesses are looking for new and innovative ways to create value for customers and disrupt established markets. This can be achieved through a variety of means, such as through the use of technology, business model innovation, or by targeting untapped segments of the market.
To sum up, disruptive strategy is a powerful tool for companies looking to achieve success in today's business world. By identifying and serving overlooked or underserved segments of the market, companies can create new opportunities for growth and disrupt established markets. It is important to remember that disruptive strategy requires a deep understanding of the market and the ability to bring a completely new solution to the market that is cheaper, scaleable and more innovative than the way it has been been done before.
This article was contributed by Kendall Langston, Partner.