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You should read a book called "Blue ocean strategy"; it is about this exact thing. The core part of any disruption in my opinion is to eliminate the value cost
by p01nd3xt3r 16y ago
You should read a book called "Blue ocean strategy"; it is about this exact thing. The core part of any disruption in my opinion is to eliminate the value cost trade off. Companies usually compete on 2 grounds; lower price or increased utility. But when a someone enters the market and breaks the value cost trade off (increased utility w/ lower price) the result is usually disruption within the market.
Yes, I know the above stuff is ovious; what you need to know is how to do this. I have put some methods below.
1. Reconstruct market boundaries: you can do this by looking across alternative industries or across strategic groups in an industry. What are your customers alternative? What if they trade up? What if they trade down?
Drawing a strategic canvas and applying the 4 actions framework is useful.
2. Focus on the big picture and not just the numbers
Data driven decision making is good but sometimes people get lost in the numbers; epically the market leaders. By focusing on the big picture (context and consumer intent) instead of just the numbers you are more likely to be able to see outside of the existing market paradigms.
3. Reach beyond existing demand
First tier: “Soon to be” non-customers who are the edge of our market; waiting to jump ship
Second tier: refusing non-customers who consciously choose against our market
Third tier: “unexplored” non-customers who are in markets distant from ours
There are many other ways as well e.g.: Get the strategic sequence right etc...but these were some of my favorites.