The London Business School Review has published an article looking at disruptive innovation and says there are 3 ways to beat industry disruptors at their own game.
- Treat disruption as both an opportunity and a threat
The mistake many companies make is to see disruption as a threat and ignore opportunities. Nintendo was threatened by the Sony Playstation and Microsoft Xbox. They saw the opportunity as well as the threat, and developed the Wii.
- Think like an entrepreneur
Think of BA’s response to the threats of the low-cost air carriers. They developed a new brand – Go – later sold, while they changed their business model.
- Get ready to defend and attack
When your market is under attack, you need to both defend it and also come up with something new. Nestle did this when it developed Espresso. The company developed one strategy to protect the core business and a second to create a new venture that capitalised on the new market opportunities created by the likes of Starbucks.Source: London Business School Review- 3-Ways to beat Industry Disruptors