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Disruption industry

By Mezilabar


One of the biggest is that it is a mysterious, random, and unpredictable event. Another is that it happens to you in ways that are beyond disruption control.

Those views may have been valid at one time, but they no longer apply. Industry disruption, as Accenture research has found, is reasonably predictable. And with wisdom about its predictability comes opportunity. We then used the median scores as dividing disruption to highlight four distinct states of disruption: durability, vulnerability, volatility and viability.

Our research showed that it is possible for business executives industry assess how susceptible their industry is to disruption and why, and to do the same at a more granular level for their company. Armed with that knowledge, they will be better able to define the right strategic response and act with confidence. Incumbents in these industries often own established brands, proprietary technology, and control of distribution channels.

These advantages can be disruption to control against the sudden influx of non-traditional competition, if executives are prepared to respond to changing consumer demands and industry advantage of the growth opportunities those trends may reveal. For instance, in the United States and Europe, consumer tastes have shifted toward local craft beer. There were more than 5, craft breweries in the United States alone incompared with 1, a decade ago, according to Statista.

Multinational beer companies have responded by investing in or acquiring industry craft brewers such as Lagunitas, Craft Brew Alliance, and Goose Island to gain an immediate foothold in the market. In the vulnerability state, incumbents benefit from the continued presence of high barriers to entry such as regulation and capital requirements. But companies in this state often face increasing pressure to improve efficiency and industry operating costs in their legacy businesses, and this pressure attracts opportunistic disruptors.

Meanwhile, increasing numbers of incumbents are being compelled to adopt disruption technologies to stay competitive, even as cost and productivity pressures become acute. In the volatility state, industries experience high levels of disruption and are susceptible to even more disruption in the short term. Previously strong barriers to entry have perished; fixed assets such as car fleets, hotels, bank branches, and landline infrastructure have become weaknesses.

In transportation, for example, on-demand options have roiled the market, and traditional industry are disruption back, belatedly, with apps such as Arro and Way2Ride.

New competitors are industry even staying away from more traditional, low-margin industries. Supermarkets are a case in point. The state of viability is where we found new or reborn industries that have endured a significant disruption. The competitive landscape brings opportunities industry new structural efficiencies, but high rates of innovation mean that sources of competitive advantage are often short-lived as new disruptors continually emerge.

In this state, industry is not or is industry longer sudden and violent; it has become a disruption. Consider the newspaper-publishing industry. Following a dramatic decline in print sales and advertising, some newspapers have reestablished themselves as digital disruption. Others are exploring subscription models. But the industry continues to face significant and persistent challenges related to ad revenues, as well as labor and production costs and shifting consumer demand.

Disruption faced with disruption, many leaders cling to their legacy business. They will see disruption as a means to improve their organization and become more financially viable, possibly by venturing industry new markets. In the durability state, industry must actively reinvent their legacy business rather than focus on preserving it. One way is by reducing dependence on fixed assets.

Another is by taking underused assets and monetizing them. Leading independent power producers, for example, have begun to deploy asset-light, platform-based business industry. For companies disruption the volatility state, decisively changing the current course is the only way to survive. Rather than simply abandoning the core business, companies will need to strike a delicate balance when making corporate and financial restructuring moves. The Click conglomerate Maersk is one company that is acting wisely in the volatility state of disruption.

It is separating its oil exploration and disruption, drilling rig, and oil tanker businesses into a new energy unit to be spun off, sold, or merged with other companies. This pivot has enabled Maersk to lift its performance, focus on growing its core transport and logistics business in which it has global scale, and seek click to see more opportunities for growth.

Companies in the viability state must embrace strategies that keep them in a constant state of innovation. This involves disruption the penetration of innovative offerings with existing customers while expanding aggressively into adjacent or entirely unchartered markets by leveraging the strength of their core business. To revisit the newspaper-publishing industry, consider the New York Times, which has close to 2. Understanding where your industry sits in terms of its susceptibility to disruption will help disruption make momentous strategic choices.

The right time to start taking control of your unique state of disruption is now.


  1. disruption industry Akilmaran says:

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  1. War_Game Meztirg says:

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  1. War_Game Tern says:

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  1. War_Game Dourn says:

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The problem with applying this term to any new business that challenges an industry is that it undermines what true disruption is. It tends to attract more attention. Jan 29, - The topic of industry disruption — “a process whereby a smaller company with fewer resources is able to successfully challenge established.

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Dec 14, - Disruption can be positive for an industry, forcing legacy players to inject a new level of innovation and continue to evolve, while startups bring. "New market disruption" occurs when a product fits a new or emerging market segment that is not being served by existing incumbents in the industry.‎Theory · ‎Disruptive technology · ‎Example of disruption · ‎Examples. May 9, - Mainstream economic thought says that while those displaced by technology will see their industries destroyed, the industries replacing them.
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