Platform Disruptions

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Platform Disruptions
Akshay Nirmal, Business Consultant, Australia

Disruptive platforms are often much bigger than disruptive products. Some examples:
  • Uber owns no vehicle, but is still the largest taxi company in the world
  • Alibaba has no inventory, but is yet the greatest world retailer
  • Airbnb owns no real estate, and yet became the biggest provider of accommodation
Unlike low-end disruptive products, low-end disruptive platforms can change the dynamic of an entire industry. It is more difficult for incumbents to respond to disruptive platforms compared to disruptive products. The massive number of people attracted to platforms makes it difficult for incumbents to respond to them.

While disruptive products offer new options to buy, disruptive platforms cause societal shifts. They have major effects on peopleís lives, how they interact and how they work. For example, they trigger platform-based jobs that many people make a living out. Flexibility is typically a major reason for people attracted to these platform-based jobs.

Singh, S. (2012). New Megatrends.†Implications for our Future Lives. UK: Frost & Sullivan, Palgrave & Macmillan.
Vazquez Sampere, J. (2016). Why Platform Disruption Is So Much Bigger than Product Disruption.†Harvard Business Review,†April 2016.



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