Answer To:
Taruna answered on Oct 14 2021
Introduction
Disruption stands for the obstacle in the doing something that has normal progress of pace of development, as per the traditional dictionary meaning. Clayton Christensen used this term in his book The Innovator’s Dilemma and since then, innovation and disruption are applied as the compliment to each other. After that moment, the word disruption has been tossed around inside business for several different innovations, developments, and theories (Ekewe & Islam, 2012). Various researchers, when studying the market and the behavior of the businesses that are part of it, have added to the conversation. Christensen defines disruptive innovation as "a mechanism through which a product or service initially takes root at the bottom of a market in simple applications and then continually rises up the market, ultimately displacing existing rivals." Thus, it is by far, one of the most significant aspects of the business world, to foresee the impacts of disruption over their service sector (Christensen, 2013). Organizations tend to innovate their service delivery and product development process so that they can ideally disrupt their rivals and stand firmly in an immensely competitive market.
The following is an analysis of the innovation and disruption for Amazon, one of the largest e-commerce based platforms that have shown considerable growth over the course of time. An analysis of the risk factors associated with this growth is also examined effectively. The major competitors in the e-commerce and in some specific products that Amazon owns are Google, and e-bay. A comparative overview of the risk factors that are assonated with it is also taken for analysis.
Interpretation of Disruption
At first, it is significant to note here that for brands to find development of their own competitive environments is an ongoing challenge. Companies are increasingly forced to expand in ways that are not always entirely convenient, because the role of consumer insight is to form and encourage innovative ideas to ensure productivity with target customer’s theories (Ekewe & Islam, 2012). The first brands that come to mind when advertisers are told to think about brands that have effectively disrupted are Uber or Airbnb. They can also think of examples from textbooks like Apple or Amazon. While these are the most well-known brands, there are many other local, and less popular, cases that can provide opportunities for learning from and sharing at the forefront of consumer’s minds. It can be learnt from brands that have sustained growth under heavy market conditions is worth asking about the disruption they have gone through.
Secondly, Christensen states that a brand must distinguish itself in the minds of customers and stand apart in some impactful way in order to transform a market successfully. This takes different forms, often relating to technology or particular aspects of the product itself, but the shift also stems from locking in on specific moments to dominate the consumer's path. Disruptors must question the status quo in order to alter the way things have historically been done, setting up the category debate by using information from categories that tend to be obsolete. He also states that in the banking world, Capitec is an outstanding example of how this has been achieved. By doing two things, they fought off conventional banking: opening on Sundays and simplifying their deals. Of course, this attracted interest and enthusiasm, which the business then followed with exemplary customer service and reasonable fees (Christensen, 203).
The use of huge and short offers to attract customers to buy online, when they are usually in-store shoppers, can also be discussed. Occasionally, in order to negate the need for consumers to keep the item in their hands, retailers like Takealot and others will offer substantial discounts. Another technique used is time pressure. A severe instance is when a website like onedayonly.co.za provides a substantial discount, just for a very limited time.
Analysis of Amazon as the Disruptive Innovator
Amazon has more than four hundred million primary customers worldwide, making the business one of the giant e-commerce players. The consistency of the network and service that Amazon offers as an online marketplace makes it very hard for other rivals in the same market. It is impossible to determine whether someone out of all rivals has the potential to 'beat' Amazon in e-commerce due to the wide variety of goods the organization deals with as well as the type of service it provides to its primary and normal members. The best other companies can do is to co-exist with Amazon and they can do their best to provide customers with the same quality service levels (Iyer & Sharma, 2006).
Therefore; in the incarnation and force of relentless and audacious disruption, Amazon leads the charge. This is the business that, with publishers and existing booksellers around the world, went head to head at its beginning. "It forced many rivals and existing businesses to change their business models or shut the doors. The value generated by the ability of Bezos and his team to supply billions of books and other printed materials more cheaply and efficiently...