Businesses that created an impactful impression in the industry altogether

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Disruptive Businesses
Businesses that created an impactful impression in the industry altogether
Humans always trying to make tasks easier and more efficient and that instinct has
resulted in an increase of supply often bringing with it lower prices -- and market
disruption.In the world of business we have always heard about Uber and WhatsApp to
tap into the disruptive market. These are the businesses that have shaken up their
fields. But what is exactly is this disruptive market? Who exactly are disruptors?
A disruption in a market can be called as an innovation that helps to create a new
market and value network which eventually disrupts the existing market and value
network. Don’t get jumble up with the term innovation here. There is a distinction
between a business model being only innovative and being innovative + disruptive. Just
as all square are rectangle but all rectangles are not square; likewise all disruptors are
innovators but all innovators are not disruptors. Disruption is approaching the
products/services to the larger portion of the society than had it in the past. The
disruptive businesses stand out different among all with the type of innovation they
come up with. We can say that disruption is a kind of an innovation but it leads to
brought change in the whole market. The businesses who want to creates disruptions
either lowers the cost of goods or services they come up with, creates an additional
supply of goods or services or does both.
Two Categories of Innovation
There is also another kind of innovation which is called as Sustaining Innovation. In
contrast to disruptive innovation, a sustaining innovation does not create new markets

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or value networks but rather only evolves existing ones with better value, allowing the
firms within to compete against each other's sustaining improvements.In sustaining
innovation circumstances the challenge is to make better products that can be sold for
more money to attractive customers, while in disruptive circumstances the challenge is
to commercialize a simpler, more convenient product to a new or unattractive customer
segment. Research shows that in sustaining circumstances the incumbents almost
always win however in disruptive circumstances the entrants are most likely to beat the
incumbents.
To elaborate this lets see an example. Innovation of different automobiles can be called
as sustaining Innovation. However innovation of Low priced Ford Model Twill be
disruptive innovation, which opens up the option for buying cars even for middle class
people.
Apple’s initial technological disruption allowed greater public access to
computer systems, enabling people to become more productive.Apple had to develop
new technology platforms from the ground up. So Apple illustrates the fact that
some disruptors do have to develop new technology platforms; but there are plenty of
examples where existing platforms have made developing disruptive technologies
significantly easier.
Now after knowing about what disruptive business model exactly means lets have a look
at some of the disruptive businesses who have shaken up their field.
1. Uber
This company is America’s international travel company who developed an app to
connect consumers (searching for a ride) with the rider. The company was founded in
March 2009. Uber’s CEO, Travis Kalanick, got an idea for the business when he was
trying to search for a taxi in Paris but was not able to get the one. They don’t own any of
the taxi; they just have the guideline to register with them as an Uber Rider.
The ubiquity of smartphones enabled it to create a technology platform that quickly and
conveniently connects almost anyone who wants to provide transportation services
with people in need of transportation services, all while reducing the costs of service
providers.
Uber’s technological disruption has increased the number of personal transportation
providers available to customers.Uber, WhatsApp, AIrbnb and Amazon were all
developed on established software platforms.

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2. Airbnb
Airbnb runs on a marketplace platform model for accommodation. It connects hosts
and travellers and enables transactions without owning any rooms itself. This platform
disrupted the traditional industries by creating new sources of supply and relying on
curation (management activities required to maintain research data long-term) for
developing quality.Airbnb was founded in August 2008 by Brian Cheskyand Joe Gebbia,
and is currently headquartered in San Francisco, California, USA.AIrbnb has used the
network orchestrator model where they leverage the power of network in creating a
new cross-industry transformation to the hotel industry.

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Just as Uber, same in case with Airbnb, the ubiquity of smartphones enabled it to create
a technology platform that quickly and conveniently connects almost anyone who wants
to provide accommodation services with people in need of accommodation services, all
while reducing the costs of service providers.Airbnb is much affordable option because
it is providing a platform to the people who want to utilize unused part of their home at
work and earn money out of it.
3. Whatsapp
WhatsApp Messenger is an instant messaging app for smartphones which allows you to
exchange messages without having to pay for SMS.It works under a subscription
business model. WhatsApp Inc. was established in 2009 and is headquarter in Mountain
View, California, United States.WhatsApp’s technological disruption has
increased access to mobile messaging by lowering fees.
The prevalence of mobile phones with internet access allowed WhatsApp to develop
applications that allow people all over the world to send messages to one other across
IP networks, as opposed to sending messages in SMS format. WhatsApp's applications
have resulted in greater access to messaging at a low cost. Their recently updated app
enablesuser to call for free to the other WhatsApp user.
4. Amazon

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Amazon.com, Inc. is an American ecommerce company with headquarters in Seattle,
Washington, US. It started as an online bookstore company but soon diversify into other
products. It was the only company who was responsible for making logistics shipping
exciting.
Amazon’s initial technological disruption effectively increased access to a larger variety
of products at lower costs.Amazon has separate retail websites for United States, United
Kingdom & Ireland, France, Canada, Germany, The Netherlands, Italy, Spain, Australia,
Brazil, Japan, China, India and Mexico. Amazon also offers international shipping to
certain other countries for some of its products.
Recently, in order to expand themselves to the grocery business, they launch
AmazonFresh. It is an online grocery service offering free same-day delivery, with hopes
that speedy grocery sales will boost purchases of their core non-grocery items as well.
The company has proven to be a pioneer in the online business world through creating
changes which have forced the marketplace as a whole to adapt.
5. Xiaomi
Xiaomi, which means millet in Chinese, was founded in 2010 to make software for
mobile devices running Google’s Android system, and the company introduced its first
smartphone in China the following year. In April, Xiaomi said it would enter 10 new
markets including India, Brazil and Russia. It is the latest entrant which disrupted the
whole market and created an impactful impression in the whole world, inspite of having

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their limited reach. It is the 3rd
largest smartphone distributor in the world after
Samsung and Apple. Lei Jun is the founder and CEO of Xiaomi Inc.
Xiaomi has been winning users by selling inexpensive phones with hardware and
specifications comparable with more expensive devices. Xiaomi keeps its cost low down
by selling directly to consumers onlinein this way the company disrupted the whole new
market by reaching to all classes of people with their products. They have a cost
advantage over many of the larger vendors because of their online sales model.
As these businesses moves into the future its for sure that we will continue to see them
disrupting the new markets with its growth and branching out into new areas. Through
theadaptation to fit the needs of consumers and with the help of innovation they will
continue to prosper. And we also hope to continue to see more disruptive businesses
that will promote changes in the industry.

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Ref:
http://www.forbes.com/sites/carolinehoward/2013/03/27/you-say-innovator-i-say-disruptor-whats-
the-difference/
http://www.entrepreneur.com/article/245842
http://www.forbes.com/sites/onmarketing/2015/05/18/why-fem-vertising-is-working-for-lane-bryant-
pantene-nike-under-armour-always/
http://www.bloomberg.com/news/articles/2014-11-03/xiaomi-said-to-seek-funding-at-valuation-of-
about-50-billion