Wednesday, December 4, 2013

Big Bang Disruption

Evidently, in the tech industry new improvements in technology change the game, so to speak.  As a result, prices and costs are driven down over time.  New products enter the market that are both superior and cheaper.  Hence, there are new markets, and even products lines being destroyed or created overnight.

Innovators are breaking the rules.  It was axiomatic for organizations to pursue one strategic discipline at a time (low cost, innovator, or customer centric).  With new information technologies innovators are capable of all three at low costs.

The fact remains disruptive innovators, in some cases, have the advantage in cost structure relative to a larger competitors.  Innovators can rapidly secure market share with superior quality, and tech savvy. 

Moreover, disruptive innovators have access to near perfect market information, and for this reason, are well poised to exploit advantages in technology.   These innovators are creating new markets, and thus leaving behind competitors using traditional models like for instance vs. Big Box retailers.

At any rate, this phenomenon is interesting in the context of competition and strategy development for Fortune 1000 corporations against rising challengers in startups companies using disruptive technology. 


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