Marketing Minute 069: “Low-End Disruptive Innovation Explained” (Marketing Strategy)
24.8 هزار بار بازدید -
7 سال پیش
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When you understand Disruptive Innovation,
When you understand Disruptive Innovation, you can better predict changes in the marketplace. So... it's time to #take60seconds to learn about disruption.
You’ve likely heard the term “Disruptive Innovation” many times, but probably not being used the right way.
Many people assume that if something has a technical aspect to it and it takes market share away from some incumbent producer, then the new product or brand must be a “disruptive innovation.” But this isn’t necessarily true.
Disruption theory, as developed by Clay Christensen and his colleagues, explains how most buyers in a market initially consider disruptive innovations as inferior to the incumbent products. In the beginning, few buyers are willing to purchase these inferior products and incumbent producers are happy to let those low-margin items be produced by someone else.
The disruption occurs as the low-end producer begins to increase quality levels to the point that the incumbent’s customers start to switch brands. Price wars begin and the incumbents eventually convert their production to higher-margin items. As this pattern is repeated for higher-quality subcategories, eventually it can drive incumbents out of the market.
The lesson from low-end disruption? Consider all competition a potential threat, even if it appears to be inferior to your brand.
**Be sure to subscribe to my channel so you don't miss any future episodes of Monday's Marketing Minute, where you’ll learn about:
- Marketing Strategy and Tactics
- Brand Development
- Personal Branding and Professional Branding
- Marketing Yourself
- Marketing Leadership
- and whatever relevant and related topics come our way.
**Also, connect with me on any of the following:
LinkedIn: LinkedIn: anthonymiyazaki
Twitter: Twitter: sensiblefolk
Instagram: Instagram: sensiblefolk
YouTube: anthonymiyazaki
You’ve likely heard the term “Disruptive Innovation” many times, but probably not being used the right way.
Many people assume that if something has a technical aspect to it and it takes market share away from some incumbent producer, then the new product or brand must be a “disruptive innovation.” But this isn’t necessarily true.
Disruption theory, as developed by Clay Christensen and his colleagues, explains how most buyers in a market initially consider disruptive innovations as inferior to the incumbent products. In the beginning, few buyers are willing to purchase these inferior products and incumbent producers are happy to let those low-margin items be produced by someone else.
The disruption occurs as the low-end producer begins to increase quality levels to the point that the incumbent’s customers start to switch brands. Price wars begin and the incumbents eventually convert their production to higher-margin items. As this pattern is repeated for higher-quality subcategories, eventually it can drive incumbents out of the market.
The lesson from low-end disruption? Consider all competition a potential threat, even if it appears to be inferior to your brand.
**Be sure to subscribe to my channel so you don't miss any future episodes of Monday's Marketing Minute, where you’ll learn about:
- Marketing Strategy and Tactics
- Brand Development
- Personal Branding and Professional Branding
- Marketing Yourself
- Marketing Leadership
- and whatever relevant and related topics come our way.
**Also, connect with me on any of the following:
LinkedIn: LinkedIn: anthonymiyazaki
Twitter: Twitter: sensiblefolk
Instagram: Instagram: sensiblefolk
YouTube: anthonymiyazaki
7 سال پیش
در تاریخ 1396/05/16 منتشر شده
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