Understanding the Dynamics of Market Disruption PPT
This PPT slide, part of the 27-slide 4 Stages of Disruption PowerPoint presentation, outlines a framework detailing the 4 stages of disruption, focusing on the actions taken by disruptors and the corresponding reactions from incumbents. Each stage is characterized by specific behaviors that define the dynamics of market evolution.
In the first stage, "Disruption of Incumbent," a disruptor introduces a new offering that, while not addressing all market needs, presents a superior solution. The incumbent typically dismisses this innovation, viewing it as irrelevant. This denial reflects a broader reluctance to acknowledge potential existential threats posed by new entrants.
The second stage, "Rapid Linear Evolution," sees the disruptor innovating quickly by enhancing features and capabilities. Here, the disruptor solidifies its value proposition after initial customer feedback. The incumbent begins to recognize the disruptor's offering, comparing it to its own and identifying deficiencies.
In the third stage, "Appealing Convergence," the disruptor targets a broader customer base, particularly those who are slower to adapt. The disruptor learns from past limitations while presenting its offering in a new light. The incumbent, meanwhile, reacts by attempting to integrate some disruptive elements into its existing products, signaling a shift from denial to acknowledgment.
The final stage, "Complete Reimagination," occurs when the disruptor reaches a critical decision point. New market entrants leverage insights from the disruptor's success without fully embracing legacy customers. The incumbent, now lagging, struggles to define its new product in relation to the evolving market landscape.
This framework provides a structured understanding of how disruption unfolds and highlights the importance of recognizing these stages for strategic decision-making. Companies can use this insight to navigate their own responses to market changes effectively.
This slide is part of the 4 Stages of Disruption PowerPoint presentation.
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