Thursday, June 16, 2016

Disruptive Strategy

Disruptive strategy can be a double edged sword.  There are a lot of roadblocks to launching a successful disruptive strategy.  Often companies will be fearful that any efforts for future innovation can ultimately take something away from their current successes.

 I've used Apple before and I'll use them again as I think they are definitely a company that uses a self-disruptive strategy to its advantage.  When Apple comes out with a new Iphone it effects the sales of the Ipod because the Iphone can do the same thing the Ipod does, but you only need one device.  Even though there may be a reduction in sales of the Ipod, it doesn't matter because the sales of Iphones and the profits from them far exceed their losses from the Ipod.  It works for Apple because they have the resources to be able to use this kind of strategy and their competitors who try to follow suit with their own product lines are often not able to do so successfully because they can't afford to.

 Apple has disrupted industries again and again and it works for them, but that's not the case for everyone.  It's a slippery slope, but when it works, it works well.  Apple is always looking for a new industry disrupt.  Newer innovations like Apple TV and the Apple watch are proof that.  Apple is always looking for new place to infiltrate.  There has even been talk of an Apple car.  Apple is a company the continually reinvents the wheel.

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