1. The Story of Chotukool
and The Theory of Disruptive Innovation
Annie Ruan

2. • Disruptive innovation (DI) is defined as “a
process by which a product or service takes
root initially in simple applications at the
bottom of a market or in a new market, and
then relentlessly moves ‘up market’,
eventually displacing established
competitors”.

3. Incumbents nearly always win
Performance
Entrants have advantages (low-end and/or
new markets)
(inferior; other unique features)
Time

4. Key features of DI
• inferior performance on attributes that
mainstream customers value at the time of
product introduction
• new features appreciated by low-end or
new/niche customers (typically cheaper,
smaller, easier to use, etc)
• “disruptive” rather than “sustaining” to all the
significant incumbent firms

5. Innovator’s solution
• Using “Job-to-be-done Market Analysis” to
Gain a Disruptive Foothold – compete against
non-consumption and find non-consumers
• Disruption is facilitated by “Good Enough”
technology that makes things more idiot-proof
– simplify the functions which are only used
by techies
• Initiate changes from the TOP and set up a
separate business unit to protect the DI ideas

6. Godrej and Christensen
• The DI workshop and Innosight
• The idea and R&D of Chotokool

7. Portable Refrigerator (Miniaturization)
Chottucool’ by Godrej and Boyce’
C’
• Designed for people of rural
areas in India.
• Priced at $69 (world's cheapest
fridge)
• No compressor, Only Cooling chip
and a fan run on batteries
• 20 Parts
• Involve villagers right from the
design to selling of the product.
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8. Value Proposition & Target Market
• Portable
• Top-opening unit weighs
only 7.8kg,
• Uses high-end insulation
to stay cool for hours
without power
• And consumes half the
energy used by regular
refrigerators
• Target MOP Market
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9. • Business Model –
Partnering with NGOs to create community entrepreneurs to
sell Chottu Cool.
• Target market —
• From pan wallahs, food sellers to flower sellers to even the rural
homes gives some idea of how profitable this innovation could
be.
• Refrigerator penetration is only 18% of the total population, there
was a huge potential market.
• The difficulty in cultivating a DI
• The competitive advantage of Chotokool
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