Why Companies Need to Disrupt?

In today’s fast-paced and competitive world, companies can no longer survive through purely incremental improvement. They either choose to disrupt or be disrupted by others who are more innovative and agile.

Disruptive innovation refers to the process whereby a new company storms a market, outperforms, displaces, and disrupts established brands and players. Such a company eventually transforms the market and changes the way successful businesses operate. It is usually an innovation strategy that makes highly sophisticated and expensive products or services, which begin by being available only to high-income consumers, more affordable and accessible to a larger consumer base.

There are many examples of disruptive innovation in history that have changed entire industries and created new markets in India. For instance:

## Nirma: Disrupting the Laundry Detergent Market

One of the earliest instances of disruptive innovation in India was Nirma detergent powder. Its aim was to replace the ‘washing soap bars’ and offer a product at an affordable cost. Detergent powders make washing easier as soaping and scrubbing will be no longer required.

Nirma was launched in 1969 by Karsanbhai Patel, a chemist who worked for the Gujarat government. He started making detergent powder in his backyard and selling it door-to-door at Rs 3 per kg, which was one-third of the price of the leading brands at that time. He also used an innovative marketing strategy of using catchy jingles and rural women as brand ambassadors.

Nirma soon became a household name and captured a large share of the low-end market segment. It also forced the established players like Hindustan Lever (now Hindustan Unilever) to launch their own low-cost brands like Wheel to compete with Nirma. Nirma’s success story shows how a simple product innovation can disrupt an industry by catering to the unmet needs of millions of customers.

## Ola Electric: Redefining Electric Mobility in India

Ola Electric is another example of disruptive innovation in India that aims to redefine electric mobility in the country. Ola Electric is a subsidiary of Ola, one of the world’s largest ride-hailing companies. Ola Electric was founded in 2017 with a vision to make electric vehicles (EVs) accessible and affordable for everyone.

Ola Electric has been working on various aspects of EV ecosystem development, such as charging infrastructure, battery swapping, vehicle financing, and policy advocacy. In 2019, Ola Electric announced ‘Mission: Electric’, with a commitment to place 10,000 e-rickshaws (three-wheeled electric vehicles) in its service within 12 months. It also acquired Etergo BV, a Dutch EV startup that makes electric scooters.

In 2021, Ola Electric unveiled its plans to set up the world’s largest two-wheeler factory in Tamil Nadu with an annual capacity of 10 million units. The factory will produce Ola’s upcoming range of electric scooters that will offer smart features like app-based keyless access, digital speedometer, navigation system,
and cloud connectivity.

Ola Electric’s ambition is to make India a global leader in EV manufacturing and adoption. It also hopes to create millions of jobs and reduce carbon emissions through its disruptive innovation.

## Meesho: Empowering Homemakers through Social Commerce

Meesho is another example of disruptive innovation in India that has empowered millions of homemakers through social commerce. Social commerce is a form
of e-commerce that leverages social media platforms like WhatsApp, Facebook,
and Instagram to sell products online.

Meesho was founded in 2015 by Vidit Aatrey and Sanjeev Barnwal as an online marketplace for resellers who could source products from suppliers and sell them
to their network of customers through social media channels. Meesho provides
a platform for resellers to browse through thousands of products across categories like fashion, beauty, home decor etc., order them on behalf
of their customers,
and earn commissions on every sale.

Meesho also provides logistics support, payment collection,and customer service for resellers, making it easy for them to run their online business without any hassle. Meesho has enabled over 13 million resellers, mostly women from small towns and rural areas.

These examples show how disruptive innovation can create value for customers and society while challenging incumbents who fail to adapt or innovate. As Christensen famously said: “The electric light did not come from continuous improvement of candles” . In other words, disruptive innovation requires a radical shift in mindset, business model, and value network.

However, disruptive innovation is not easy to achieve or predict. It requires enabling technology, an innovative business model, and a coherent value network that can support the new product or service. It also involves taking risks, experimenting with new ideas, and learning from failures. Moreover, it faces resistance from established players who have vested interests in maintaining the status quo.

Therefore, companies need to be aware of the potential threats and opportunities posed by disruptive innovation. They need to monitor their markets for signs of disruption and respond accordingly. They need to invest in research and development (R&D), foster a culture of creativity and experimentation, collaborate with partners across different sectors, and embrace change as an opportunity rather than a threat.

By doing so, companies can either become disruptors themselves or adapt to disruption by others. They can create new value propositions for their customers while staying ahead of their competitors. They can survive and thrive in an ever-changing world.

About the Author:

Ratnesh Jain
Managing Partner & Founder – BlueGenesResearch.com | Expert Advisor/Mentor – Zokudo.com Prettislim.com EaseMyHR.com HMGroupIndia.com
Leadership hiring expert and startup mentor. IIM Ahmedabad alumni with 30+ yrs of professional and entrepreneurship experience. Past 17 years in Executive search & Growth consulting.