Sometimes the competition has done that already. They jumped on the disruptive technology allowing a totally new price point to be met opening new previous untapped markets. Apple did it with iPod where they set a new business model and customer value proposition including a different profit model (making money on the scrap instead of music).
When we look around, which disruptive innovations do we see entering the marketplace?
I can think of at least two;
Tata Nano:By thinking totally different about how to make a car Ratan Tata managed to create a car with a totally different price-point. Does it work in Europe or US? No of course not. Once Tata Nano climbs the value ladder will it work? Of course it will. What will happen to existing manufacturers? They will have to be squeezed in the upper right value corner. There will be no way for them to compete. Not because Tata is making such a great car but because it has a totally different Value Proposition and profit model run by a company with a different culture. This is disruption.
Google Nexus One:Compared to Tata Nano Google is doing something different here. They attack the current value network of phone manufacturers and mobile operators. Currently you sell a phone subsidized with a subscription for 12, 18 or even 24 months fixed pay. The theory goes that you switch phone more often if you get it cheaper and then the operator gets you used to high monthly bills. Since Google is only interested in getting high penetration for its Android platform to sell more advertisements there is no need for profits on the actual phone. There is a new profit model here and value network. But is it bold enough compared to Apple and is it disruptive enough as Tata Nano? Currently I don't see those things clearly enough to determine if it is a truly disruptive offering or just a me-too.
