How do I respond to disruptive competitors?
The Short Answer
First, determine if the disruption is real (are they actually serving a growing need better?) or illusory (different segment, not actually competitive). If real, your response depends on your assets: can you serve the new need better, or should you double down on what you do well and let some market go?
Biological Insight
Mass extinctions show that highly specialized species are vulnerable when conditions change - their adaptations become liabilities. But generalists aren't always better; they often can't compete with specialists in stable niches. The organisms that survive disruption are often those with latent capabilities - traits that weren't useful before but become valuable in new conditions. This suggests maintaining some organizational 'genetic diversity.'
Key Questions to Ask Yourself
- Is the disruptor serving the same need differently, or a different need entirely?
- What assets do you have that the disruptor lacks?
- Can you serve the emerging need better, or are you structurally disadvantaged?
- Is the disruption growing fast enough to matter in a relevant timeframe?
- What would you need to change about yourself to compete - and can you?
Common Mistakes
- Dismissing disruption as 'different market segment'
- Trying to out-disrupt the disruptor (fighting on their terms)
- Protecting existing revenue at the cost of capturing new revenue
- Moving too slowly because change is organizationally difficult
- Panicking and abandoning strengths that still matter