One of my favorite companies to track and watch is Apple.
It’s one of my favorite companies to watch not for the reason you might think though.
I mean, sure they have the iphone, the ipad, mac computers and a list of other products in their arsenal. And I happen to use an iphone and have good things to say abut the ipad.
But that’s not the reason I like them.
What makes me love Apple so much is for their ability to use market disruption as a tool. There isn’t another company out there that can use disruption in the ways that Apple does. They don’t back off a market just because that market has well established players. They come in an introduce products that take off and corner the market for their company and leaving their competitors left scratching their heads.
So what exactly is the disruption business model?
Before I can explain to you what exactly is the disruption business model, first you need to know about it’s distant cousin. Sustained innovations.
Sustained innovations are simply innovations that will improve a product or service so that it appeals to the most demanding customers. These can be rather small improvements or breakthroughs.
A disruption business model on the other hand is one that’s aimed at serving a market of new or less demanding customers with a product that may very well be inferior, but is much more simpler to use.
But how can you use the disruption business model against your competition?
I looked at the disruption business model and I’ve rounded up three questions that you must answer if you want use and leverage disruption in your market. These questions come courtesy of Zack Urlocker from infoworld.com
— Is there a large population of people who historically have not had the money, equipment or skill to do this thing for themselves?
— Are there customers at the low end of the market who would be happy to purchase a product with less (but good enough) performance if they could get it at a lower price?
— Is the innovation disruptive to all of the significant incumbents in the industry?
By answering these three questions, you’ll come up with ways to introduce a disruptive product or service into your market.
Let’s sum things up here.
You learned that the disruption business model has a distant cousin called sustained innovation. That business model is aimed at the most demanding of customers. However the opposite of that business model is what’s called the disruption business model. And it’s aimed at less demanding customers who want more simpler ease of use.
How could you use the disruption business model as a way to beat out your competition? Leave me a comment below.