Look Out! Your Next Disruptor Isn’t Coming From Where You’d Expect!
In this guest post, David Yockelson the research vice president at tech research firm Gartner, says we often think of ‘disruptors’ as the the likes of Tesla, Uber and Google. But he argues disruption can come from anywhere if you’re not looking for or prepared for it…
When people think about disruptive technology or market disruptors – and stay tuned, Gartner will soon be publishing some interesting, new research about both – they tend to think of Uber, Google (now Alphabet), Amazon and other fairly massive sized (now) companies.
Of course, this makes sense given the scale of these entities by almost any measure, whether that is market capitalization, revenues or their impact on people and culture; indeed, two of those three are now verbs, while Amazon will likely generate several verbs (“Prime that!” “Just Dash it!”) and at least one interesting proper noun (Alexa). But does every disruptor have to be ginormous?
For example, one might ask if Dollar Shave Club (DSC) is a disruptor. Let’s look at its market, the $US 3 billion men’s shaving and razor blade market. Based simply on revenue, DSC can’t compare to market leader Gillette in spite of its $565M valuation (on VC investments totaling over $US163 million).
But culturally, DSC was the first to make the purchase of mail order shaving products acceptable. Now, DSC owns more than twice as much of the on-line market as Gillette does (though both can hear footsteps from Harry’s), it’s captured about 10 per cent the total market for razor blades and last year, Gillette both filed suit against DSC for allegedly infringing on a razor patent (December; DSC has counter-sued) and created its own on-line shaving club (June).
Despite the fact that many men still have beards after Movember, this sounds disruptive to me.
That said, it’s important to note a couple items: there was no specific technical invention employed here; and notwithstanding the status of shaving and its related markets, disruption in this situation is on a different scale relative to the likes of Alphabet, Tencent, Amazon, Tesla. These are companies whose actions in some cases have forced state and federal governments to legislate, and their financial resources – and often their core cultures – enable them to pivot quickly to disrupt anew. Let’s take our example above.
What if DSC were acquired by Amazon (given Amazon’s stock valuation and nearly $2US billion in cash on hand), who has a proclivity for buying on-line sellers? Imagine asking Alexa to add a new set of razors to your order through Amazon Prime, or having a Dash button on your bathroom vanity.
It is fairly easy for Amazon (or other disruptors) to enter adjacent markets given ever-increasingly available sets of digital information and systems, not to mention cash on hand and Monopoly money-esque stock prices.
The moral of the story is that a market – or a company within it – is never too big or too small to be disrupted. Disruptors are coming in all shapes and sizes, and traditional organizations, whether they have digital business strategies or not and regardless of their market positions, ignore potential disruption at their peril.
This article originally appeared on B&T’s sister business site www.which-50.com
Please login with linkedin to comment
Advertising Standards Bureau Designworks GFC Media Partners reno rumbleLatest News
Is B2B Marketing Missing Its Emotional Touch?
B2B marketers could learn a thing or two from their B2C colleagues, argues WP Engine VP APAC sales Mark Randall in this guest post. It surprises me how many B2B organisations are not quite hitting the mark when it comes to reaching their audience. When talking directly to businesses, many brands are missing an opportunity […]
Aussie Taxpayers Invested $50M In Failed Streaming Service
Fresh from buying the Australia Post board Cartier watches, the Aussie taxpayer is copping yet another shafting here.
Springfree Trampoline Unveils New TV ‘That’s Why We Got A Springfree’
Who didn't love the backyard trampoline as a kid? And many of us still carry the physical scarring from the adventure.
Women In Media’s Tara O’Keefe: “What Worked Yesterday Doesn’t Today And Certainly Won’t Tomorrow”
Here's some wise words from QMS’ Tara O’Keefe. Yet, not that wise that you'd have to have done chemistry for the HSC.
An “Intellectual Thickshake”: Ben Fordham Rips On Pete Evans, As Pete Viciously Fires Back
B&T's understanding is that Pete Evans is a chef? Why doesn't he pop on the apron and get back to cooking dinner?
Why The ACCC Has Its Eye On iMessage, Facebook Messenger And WhatsApp
Any bartender that served Rod Sims a chardonnay would NOT want to fall short of that line on the glass, that's for sure.
Burger King Trials Reusable Packaging
Here's a top initiative from Burger King that does kinda sound like a slightly tedious Craig Reucassel documentary.
Thursday TV Wrap: Gogglebox Takes Top Spot Despite Slight Dip
Gogglebox is almost like a scientific, neurological study into the human condition. Just with more bogans and ad breaks.
Borat Hijacks Landmarks Around The World To Promote Long-Awaited Sequel
Borat promotion comes to Bondi. And even it couldn't find any parking & got charged $9 for a tumeric almond milk latte.
Freelancers Marketplace Fiverr Appoints Bohemia For TV And BVOD In Australia
Freelance marketplace Fiverr has appointed Bohemia. B&T understands it's full-time and not three days casual.
Smarter Use Of Art & Science Stretch Auto Budgets Further
The majority of adverts uploaded to Facebook aren’t created for Facebook as its priority. This is causing huge inefficiencies and poor performance for brands, many of whom are facing up to shrinking budgets. Tom Phillips (main photo) managing director at Connecting Plots shares lessons from 12 campaigns they optimised for auto brands… It’s no secret […]
Jaguar Land Rover Appoints Haystac As PR Agency Of Record
We're not entirely sure if B&T goes to eastern suburbs real estate agents, but Haystac has won Land Rover's PR.
Greenpeace Warns Of The Dangers Of Deforestation In Stunning Animated Spot
Want to feel slightly more shit than you already do? A Greenpeace ad's guaranteed to activate the depression hormones.
Young Guns Take The Lead With The First PRIA University Mentoring Program In NSW
On Wednesday, 21 October 2020, the PR industry was bolstered by the launch of the Public Relations Institute of Australia’s (PRIA) first University Mentoring Program in New South Wales, adapting the traditional face-to-face program to a virtual format for the first time. In collaboration with the University of Technology Sydney (UTS), the PRIA NSW Young […]
JCDecaux Teams Up With MyPayNow To Serve Real-Time Data
JCDecaux has developed a dynamic digital campaign with live timetable data where commuters can access their money from MyPayNow while waiting for the bus. In an exclusive nationwide Out-Of-Home campaign, JCDecaux’s SMARTFRAME digital assets are broadcasting bus arrival times, letting commuters know how far away their next bus is – and just how easy it […]
Rokt Secures $US80M Series D Investment Round
Rokt has today announced an investment of US$80M. The capital will help accelerate research & development and support the expansion of its client base into new verticals and geographies as Rokt continues to make e-commerce smarter, faster, and better. The funding round was led by Rokt’s largest institutional shareholder TDM Growth Partners , and supported […]
Election Billboard Claiming Biden Is Mentally Unfit Spells Dementia Wrong
This actually would be hilarious had it not been about electing the next leader of the free world.
INNOCEAN Snares CHEP’s Wesley Hawes For ECD Role
Photographer goes the full "Leibovitz" to create moody, ethereal press pic for Welsey Hawes announcement.
How Human Centred Design Can Help Define Brand Experience
Admittedly, this one is a little highbrow and arty. However, a refreshing change from B&T's usual lowbrow and farty.
Nature Invests In New Team Members And Innovation
Leading strategic insights consultancy Nature today announced it has hired several key new team members and restructured senior roles to increase its focus on innovation, including new technology and data sources.
Dentsu International To Be Net Zero Emissions Agency By 2030
Admittedly, B&T's own net zero emissions targets have been hampered by the burnout competition in the car park.
PayPal And Buy From The Bush Launch New Marketplace
PayPal Australia and Buy From The Bush have joined forces to launch a new online marketplace to showcase rural Australian small businesses in time for Christmas. The expanded partnership aims to build stronger connections between bush businesses and Australians in cities and suburbs across the country. The new Buy From The Bush Marketplace is an […]
Foxtel Upfronts: New Shows, Remote Voice Control, & Foxtel Media’s New Data Platform For Buyers
Seven's yesterday, Foxtel's Upfronts today. If it wasn't for this pandemic, B&T staff should be very hungover about now.
Freedom Foods Appoints 72andSunny Sydney As Its Comms & Design Agency
72andSunny office staff already noticing fluffier stools after snaring breakfast cereal maker.
Streaming Service Quibi Sensationally Shuts Down After Just Six Months
Quibi has shut down after just six months. It's also now got lots of monogrammed pens it doesn't know what to do with.
Droga5 Nails It Once Again In Hilarious New Work For Amazon’s Alexa
The B&T office uses Alexa for all our everyday mundane chores. But we call him Brian the work experience student.
Neuro-Insight Study Reveals Animation Is Twice As Effective As Static Advertising
In possibly a further blow for supermodels, a new study has found animation is twice as effective as static advertising.
Wednesday TV Wrap: Gruen Takes A 200K Hit
Gruen plummets 200,000 viewers in just one week. However, that's not to say Highway Patrol went up a similar amount.
Philippe Krakowsky Named New IPG CEO
Philippe "Crackers" Krakowsky named new IPG global CEO. However, says he only uses Crackers on less formal occasions.
Cricket NSW Bans Sports Betting Ads In New ‘GambleAware’ Partnership
Cricket NSW has banned sports betting and moved to medium-strength beer. You watch, the meat pies will be next.
