Disruptive strategies can change the game when it comes to business. So, what are they? Where did this term come from? And what are some disruptive strategy examples? Let’s find out together on this page!
🏆 Top Disruptive Strategy Examples
❓ Disruptive Business Strategy: FAQ
In the sections below, we will explain everything you need to know about disruptive business strategies. You will find out what it is, how it works, and who coined the term.
What Is a Disruptive Strategy?
The definition of disruptive strategy is where a company enters a market and outshines/outperforms all the players in the corporate game. With this strategy, a business can transform how consumers perceive its image and position in the market.
The term was originally coined by a consultant and academic named Clayton Christensen. He invented and introduced the term ‘disruptive innovation’.
Who Developed the Disruptive Innovation Strategy?
The legendary entrepreneur Clayton Christensen had a breakthrough, combining theory and marketing, and created the disruptive innovation strategy. His theory has influenced many businesses, markets, and CEOs.
One of the first ever disruptive strategy presentations came from Ford Model T. There wasn’t much that differentiated the current model from the predecessor. However, it was catering to a whole new target audience – it was a vehicle that was accessible to the majority.
Clayton Christensen studied at the world-renowned Harvard Business School; he got an MBA and immediately started his entrepreneurship. And while he passed away in January 2020, his mapping innovation is still thriving.
How Does Disruptive Strategy Work?
A disruptive business strategy starts when a company identifies a white space within the market that is neglected or overlooked. Or there is a category of people that aren’t receiving the product or service they require.
When a company presents its growth strategy, business model, and analysis to become a better and more successful enterprise, it utilizes the disruptive strategy. They may provide more affordable and convenient products/services that will cater to the initially overlooked consumers.
What is a Disruptive Business Model?
A disruptive business model is a type of disruptive innovation that will bring new ideas or technology to an already existing market. Typically, a disruptive market captures unmet needs and fulfills them. These demands can be either high–end or low–end, and these allow consumers of every preference can get what they require.
📋 Disruptive Strategy Examples
A disruptive strategy is easier to understand when given illustrative examples. You can find several of the example companies below.
Aldi
Because of retailers like Aldi, there has been a shift in the foundation of the grocery retail market. Aldi has outshined and outperformed many of the established players in the game, and it made its own path. It focused on high-quality products and kept the prices reasonably low.
Aldi has won over British consumers and continues to take the market by storm. Since it reconstructed their traditional food retail business, it achieved the perfect balance between low prices and high-quality products.
Netflix
Netflix is the perfect example of a radical innovation strategy. It started as a company that supplied DVD mailouts; however, it progressed when it offered convenient and cost-effective products to particular groups in the market that were being ignored.
Netflix smartly targeted the people who liked movies and shows but were interested in something other than new releases. It provided a customized product catering to specific groups of people.
iTunes
The first iPod was launched in the year 2001; it is a portable player that can store (typically) around a thousand songs. The iPod was an attempt at a disruptive strategy. A variety of different devices were already available in the market, and while an iPod was considered better, it wasn’t a successful attempt at disruptive innovation.
However, the iTunes release is considered a successful digital transformation. By combining iPod and iTunes, Apple has managed to target a new audience. It provided convenience and lower costs which appealed to many people, making them purchase music from iTunes first and foremost.
This article covers all the general pointers surrounding the disruptive strategy, how it works, who coined the term, and what its examples are. Hopefully, now you have a comprehensive understanding of how everything works.