Discussions and materials related to Entrepreneurship and Business Management
When disruptive companies weave themselves into our daily lives -- like Apple, Amazon and Google -- they become the standard. Once those brands become established, other companies try to improve upon their value propositions -- or even just one small piece -- carving out their own market share.
That is just the cycle of disruption, and the advantage always goes to the company that is prepared to sustain innovation over the long-term.
We are entering an age of extreme change characterised by changing business models, emerging technologies and the increasing power of the consumer. Smaller companies, such as Uber and AirBnB in their early days, seemingly rise out of nowhere and cause mayhem in well-established industries.
Typically disruption happens when smaller, more agile companies, can take advantage of new technologies to completely change the way an industry works. Unencumbered by existing organisational structures and capital investment, they start with a clean sheet of paper. Larger companies often find it difficult to respond because of outdated ways of working, legacy systems and resistance to change.
How is disruption affecting your business and what can be done?
Market disruption is now a bigger issue that will end up driving bigger but outdated businesses aground. About 9years ago when my organisation an NGO into social marketing introduced Misoclear (Misoprostol 200mcg) for the management of postpartum haemorrhage(PPH) in Nigeria, we were the only competitor to the originator brand which was not even positioned for the indications our brand is positioned for. All the policy, marketing, promotional work was done and it was included in the country's essential drugs list. Presently, we have more than 30brands in the open market (genuine and fake) competing for market share. Our sales volume in the 3years have forced us to different direction for solution to our problem.
1. We are adding more products into our portfolio so we can maximise the use of our marketing resources.
2. We have franchised sales responsibilities for the established brands to another organisation which have made payment for products much easier because we are only having one mega customer who even pays before we supply servicing the other customer category.