Five Strategies Entrepreneurs Should Pursue To Purposely Disrupt Multibillion Dollar Industries
Would be entrepreneurs can take years trying to think of ideas or even problems that they could solve to potentially launch a startup. Most new startups though are based on iterations of an existing product or service slightly improved or innovated. Google was not the first search engine. Nike was not the first athletic shoe. Facebook was not the first social media company. Two out of the three companies (Google and Facebook) actually launched with a strategy of “free” to gain traction and disrupt their competitors. Even companies like YouTube, Instagram, LinkedIn and WhatsApp launched with a business model of free. They bet that if they were successful, they would figure out how to monetize the business later. Risky but it paid off for them.
So here is a thought. What if you strategically looked at industries that have risen rapidly or those that have stagnated and you purposely looked to disrupt them with a slightly innovated product or service that is only marginally better than the current offering but you changed the business model so that you could compete effectively?
A recent example of this is exactly what the brand Chewy has done to the pet industry and specifically, PetSmart and Petco. Those two firms are anchor bound to their hundreds of retail stores and all that overhead while Chewy is offering the same pet products online for less. Chewy did this so well that PetSmart acquired Chewy in 2017 for $3.3 billion as a defensive position. What will Petco do now?
Here are five strategies to fuel a startup and potentially disrupt an industry: