Disruptive businesses always seek to find and fill gaps in the market. One would think that because of their cleverness, triumphs are inevitable. However, although their efforts and ideas are novel, sometimes success does not follow. Why is that and what can we learn from disruptive innovators that lost?
What is the deal with disruptive businesses?
Also known as companies that change the world, disruptive businesses have been around for a long time – or that is what we know, at least. The inventor of the ”disruptive innovation” concept, Harvard Business School professor Clayton Christensen, argues that the term is widely misapprehended. In fact, only a few of the companies claiming to be disruptive are accurately diagnosed.
Top 3 successful disruptive innovators
Among those that changed the world as we know it, some deserve extra-recognition for their contribution. And they are:
1.Tesla
Why is Tesla such a big deal? Well, they made the accelerated transition to sustainable energy into their primary goal and they stuck to it. One of their core beliefs is that electric vehicles are not a compromise, but rather better than gasoline-fueled cars. “Electric cars, batteries, and renewable energy generation and storage already exist independently, but when combined, they become even more powerful – that’s the future we want”, writes the company’s team on their website.
2.AirBnb
When talking about disruptive innovators, AirBnb must obviously be brought up. Owing it to their focus on User Experience and great accessibility, the company took the world by storm. Even though there are a lot of complaints exposing trashed homes and noisy guests, and even a new venture called FairBnb – who aims to create a friendlier alternative to booking platforms, AirBnb is proof that a great idea withstands outside pressure.
3.Netflix
Can we even discuss about disruptive businesses without mentioning Netflix? The company started small, by renting DVDs online and delivering them by mail, giving customers the option to return them the same way. When the internet finally caught some speed, Netflix launched the streaming service that we know of. Although it was not in the ideal state that it is today, this innovation pretty much crushed the video rental business. Nowadays, even if it faces pressure from competitors, it still manages to keep its head above water.
Of course these are not the only businesses that have made a name for themselves through unprecedented ideas. There is also Uber, Apple, Amazon, Aldi, HBO and many many others. But there are also disruptive innovators that lost the battle.
”Successful failures”
1.Raden
Disrupting the luggage industry, Raden launched the Smart Suitcase in 2015. Why was it innovative? Because it incorporated a battery which could be used for tracking and charging smart devices. Despite being a sold-out item really fast, soon enough the company fell into a dark hole. Airlines banned lithium batteries and other competitors entered the market. By 2018, the company closed down.
2.Anki
Surprising the market with Vector, a “home robot” driven by emotional intelligence, Anki had high hopes for this product. However, the costs of software and hardware components soon exceeded their capabilities and the truth is that ultimately Vector did not deliver. The company closed its doors in 2019.
What can we learn from their defeat?
Truly innovative startups try to change the rules of the game by coming up with fresh products, original ideas and revolutionary activities that can turn industries upside down. They want to change society by changing the way we work, live and play, seeking unmatched creativity.
There are many ways to define what failure is and these definitions will change depending on who you ask. For disruptive innovators, critique is bound to follow them immediately after launching something new. Sometimes their companies will fail and sometimes not, but what do we always learn from defeat?
- Be level-headed when rushing into launching a new product.
- Do not assume that your attempt will be a success.
- Protect your ideas from other competitors.
- Squeeze the criticism into good advice and implement it.
- Always optimize your offer.
- Do not oversell your product.
- Fully understand the “fail fast, fail often” mantra.
*The classification is based on the author’s personal opinion.
Juggler of words and wizard of controversial ideas, I am here to share with you the world of investors as it is and as it could be.
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