Disruptive Innovation in a Global Marketplace (2024)

FAQs

What are examples of disruptive innovation? ›

The wheel, the light bulb, and the cellphone are three examples of disruptive technologies. At the time, these innovations caused a profound break with previous patterns, bringing about major changes in people's lives.

Anything that interrupts the production, sale or distribution of products, goods or services can be defined as a supply chain disruption. The most recent major supply chain disruption that comes to most people's mind is of course, Covid-19, which threatened and halted supply chains around the world.

Disruptive Marketplaces Create New Transactions

This requires disruptive marketplaces, which expand market participation by creating new types of transactions altogether. It's about enabling participation among non-participants.

7 Types of Market Disruption

Technological disruption: This occurs when new technologies or innovations significantly change how products or services are produced, distributed, or consumed. Examples include flight, the rise of the internet and e-commerce, streaming services, and ride-sharing platforms.

Netflix: A classic disruption story

Netflix's journey is the epitome of disruptive innovation. It began as a mail-in DVD service, appealing to a niche market ignored by then-giant Blockbuster. This segment included those indifferent to new releases, early DVD adopters, and online shoppers.

Tesla. Electric vehicle (EV) manufacturer Tesla has disrupted the automotive industry by challenging the dominance of internal combustion engines, transforming the perception of electric vehicles, and paving the way for sustainable transportation.

The mass-produced automobile was a disruptive innovation, because it changed the transportation market, whereas the first thirty years of automobiles did not.

In the world of global affairs and risk management, disruption and disruptors are generally viewed as a negative term. One that defines actors and events that challenge global stability, safe operating environments, and physical safety and security.

The business model of Netflix is a great example of disruptive innovation. Netflix introduced its monthly DVD subscription service in 1997. For the low price of $8.99/month, Netflix customers could rent an unlimited number of DVDs.

For a marketplace to be disruptive, it must identify either new supply, new demand, or both — targeting individuals or businesses who were unable to profitably produce or consume goods and services in incumbent channels.

What is new market disruptive innovation? ›

New-market disruption occurs when a company creates a new segment in an existing market to reach unserved or underserved customers; for example, creating a cheap version of an expensive product to cater to less wealthy consumers.

Historically, disruptive innovations like those seen in Tesla's EVs and batteries follow a pattern known as the “S-curve”. This growth model suggests that disruptive technologies start off with slow growth as they are refined and perfected.

Uber's remarkable ascent from scrappy startup to global juggernaut serves as a testament to the transformative power of disruption. Said Uber CEO Khosrowshahi, “Uber's success is a testament to the power of innovation and disruption. We didn't just create a new category; we transformed an entire industry.”

One example discussed in the online course Disruptive Strategy is the introduction of laptops in the computing industry. Laptop computers were a sustaining innovation that followed the personal desktop computer. The computers' qualities and abilities were roughly equal, with the laptop offering novel portability.

Definition. Disruptive Innovation describes a process by which a product or service takes root in simple applications at the bottom of the market—typically by being less expensive and more accessible—and then relentlessly moves upmarket, eventually displacing established competitors.

It's hard to remember, but McDonald's started out as the disruptor in its industry. Its innovations were many, ranging from standardized, efficient experience in menu and restaurant design, to great marketing.

Instead, Apple's first real example of disruptive innovation was the combination of the iPod and the simultaneous release of iTunes. iTunes is both a media library and music marketplace. It locked iPod users into purchasing music from the iTunes store. More importantly, it offered convenience and a lower price point.

So Starbucks was a disruptive innovator. It brought flavor, a friendly social setting (the "third place"), quality, plus the consistency that only a chain can bring. It brought back the smells, the sensuality, and introduced to Americans a "European experience" and what Schultz has described as the sense of theater.