When you are a new entrant in the market, it is easier to be disruptive as you have nothing to lose. However, if you have already established yourself as a market leader, disruption is difficult to implement as the new business model has to compete with the existing business model. Let’s see what the skills needed to implement a successful disruptive strategy are.
Comprehending the economics of the product innovation whilst keeping in mind the existing competitive economics:Companies that have fashioned market disruption have demonstrated total understanding of the regulations of supply and demand. Their executives value the connections linked to costs, adoption rates, and market development.
Leadership for assisting the change process:Dislocation of well-established competitors requires the displacing business to act as a change leader. Leading change incorporates dealing at multiple levels: emotional, factual and figurative. All areas pertaining to these must be clearly and effectively communicated, so people are encouraged, motivated and stimulated to take action.
Implementing processes that are sympathetic to the customer's viewpoint: Successful disruptive strategies are rooted in the perspective of how customers purchase. Processes are not designed for sellers and how they sell but for customers and how they buy.
Shrinking adoption barriers: This process has two elements: cutting down on switching costs and guaranteeing availability and sometimes a grouping of the two. Several companies devise convincing purchase motivators but fall short of reflecting on how adoption costs affect purchase decisions made by their customers. A large number of great products have been unsuccessful in markets as adoption economics have been in the favor of the status quo or due to the fact the new product simply wasn't available.
Provable thought leadership:Thought leadership requires you to be a champion for the change you aspire to observe in the world. Innovators that grab an early break for transforming themselves to be thought leaders can rule the industry for their product or service, raise the value of their prospects, identify the need for their product or service, and coagulate their position as the innovation pioneer.
Eventually, customers choose what they are willing to pay money for. Somebody who believes in the idea that they can control a customer is unlikely to succeed. Customers are wise, confident people and have to be treated with deference. Even if it leads to attacking yourself, being the disruptor is far superior in the medium and long-term than being the one disrupted.