Exploiting Chaos

150 Ways to Spark Innovation During Times of Change

150 Ways to Spark Innovation During Times of Change - an award-winning business innovation book by Jeremy Gutsche, CEO of Trend Hunter

Issue link: http://book.trendhunter.com/i/42053

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Understand the pattern of disruption THE SMITH CORONA EXAMPLE is fascinating, but not unique. The company's downfall follows a pattern. In a Harvard Business Review article titled "Disruption is a Moving Target," Scott Anthony reports that disrup- tion is a three-step process:21 1: "Disruptors enter a market incumbents don't care about." Protected by their unattractively small markets, entrants build skills and acquire market insight that big companies don't have. By servicing un- wanted customers, they build maverick brands. 65 2: "Entrants grow as incumbents flee." Growing in popularity and success, entrants begin to creep up the value chain. The "old school" incumbents respond by shiſting focus away from their full customer base and instead towards "high-value customers." 3: "The incumbent hits a ceiling." Once new entrants reach a critical mass, they create partnerships that en- able them to "go for the kill." The incumbents get pushed past their ability to compete and crisis ensues. Sneaky. To a big company, this pattern of disruption can be used to create strategies for survival. To a small company, it can influence your plan of attack.

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