“Video Killed the Radio Star” but Saved Donald Trump

Part 2 of 2: Three Ways to Survive Outside Disruption

Part 1 of this post, Don’t Overlook the Two-sided Coin of Outside Disruption, discusses business challenges associated with threats from non-traditional competitors and opportunities originating outside their core industry/segment. I maintain that an organization’s ability to quickly recognize, understand, plan and pivot against outside disruption often means the difference between growth and decline, or even life or death.

That said, what can companies do to ensure they’re on the winning side of outside disruption?

Number 1: Invest in Broad-based, Strategic Market Intelligence

It matters not your industry or marketplace – or whether your company is B2B, B2C or B2B2C – your success is highly impacted by consumer and end-user behaviors.

For several years, I worked with HP’s Graphics Solutions Business, a leader in large format, high-speed printers and web presses. It serves a host of market segments including publishing, packaging, architecture, design and commercial signage. With price tags ranging well over a million dollars, you won’t find these printers at your local office products retailer. But, people like you and me influence everything at this HP business because of the manner in which we ‘consume print” each day. Be it on road signs, labels, posters, banners, vehicle wraps, restaurant menus, books, magazines, newspapers, advertising, hardscapes and so much more, our eyes “consume print” and our minds respond in different ways.

Understanding consumer print consumption behaviors and responses is key to HP’s success. And, because it’s a global provider, HP must view and apply this knowledge across multiple continents and markets. Moreover, HP also has to understand the underlying consumer trends driving these behaviors. If you factor in the intense battle between HP and digital print, these consumer insights become even more valuable.

That’s why HP doesn’t simply monitor and evaluate its traditional competition. That’s important, but only one piece of information it must gather, analyze and act upon. For HP to maintain its leadership, it also depends on market intelligence across a broad spectrum of consumer-related areas, gaining pivotal insights into current and emerging trends, looking for tiny nuggets that ultimately could influence all important print consumption. The better HP understands the where, when, why, what and how we consume print, the more it sells.

Number 2: Diversify Offerings – Maximize Your Share of Spending

Some might say, I look scruffy these days.

It’s approaching Thanksgiving and I’m “growing a mo to save a bro.” I’m all in for “Movember” and a global movement committed to changing the face of men’s health. Since 2004, The Movember Foundation has taken action to keep men from dying too young. By 2030, it hopes to reduce the number of men dying prematurely by 25 percent. It’s a good organization and I urge you to consider supporting its efforts.

Now, back to my goatee, of which my wife is not a big fan. Despite the worthy cause, I think she’d rather me avoid the statement and simply make a donation or host an event. But, in a small way I’m part of something really big, involving more than one million men and a top 100-ranked, non-governmental organization that has raised almost $200 million to combat prostate and testicular cancers, mental health and suicide. That’s pretty cool and worthy of my 30-day scruff!

But, I ask, what about Gillette, the makers of all-things shaving? I wonder what the company thinks of Movember. And, was it paying attention back in November 2004 when a group of 30 men in Melbourne grew moustaches for 30 days to raise awareness for prostate cancer and men’s depression? Probably not. Do Gillette executives worry about the reduced demand for shaving cream and razors while men forgo our daily ritual for an entire month? Maybe, but Gillette’s product portfolio has long since been more about men’s grooming, and not just men’s shaving. So, what temporarily hurts in one area, might actually help in another. The reality is, unless you want the Leonardo DiCaprio look from The Revenant, it takes more time and effort to groom versus complete shaving. It's is much more meticulous, calling for a combination of shaving cream, razors, trimmers, not to mention beard and mustache colors, if that’s your thing.

In truth, perhaps there’s more money for Gillette in Movember than in other months. Regardless, I’m sure the company can weather the storm because long ago it diversified and expanded its portfolio beyond blades and creams. And, it probably also paid close attention to consumer behaviors where men increasingly groom body parts south of our faces. Again, more grooming, regardless of where it occurs, means more sales for Gillette.

Perhaps Movember and Manscaping should form a strategic partnership? I know of a potential corporate sponsor!

Number 3: Don’t Run and Hide – Face the Predators

Ask most brick and mortar retailers about their main competitive set. They'll start with the obvious. For Macy’s, it’s probably Dillards. For Nordstrom, it’s likely Saks. For Home Depot, it’s surely Lowe’s.

Ask the same retailers which competitor they most fear, and if they’re honest, the answer is Amazon. Simply put, the Goliath does everything they try doing online better because it never rests. Amazon pushes the envelope, takes calculated risks and invests in infrastructure/technologies necessary to keep its supply chain and logistics far ahead of any competitor.

Amazon defines outside disruption, a calculated business predator that seemingly takes what it wants. Successfully competing against Amazon involves a mix of: staying completely away from what it does; offering products, services and an experience it can’t match; and focusing on its weaknesses (e.g. hard to speak with someone live). Either way, good luck!

The same is true when it comes to Tesla, a battery manufacturer masking as an automobile company. Remember Amazon, that nice little online bookstore? Watch what Tesla does to the battery industry during the next decade. Sure, the company wants to create a luxury-level, electric automobile brand powered by its batteries, but its real play is supplying the power source to all electric transportation modes. Again, if you compete against Tesla, not as a luxury automobile player, but as a supplier of high-charge batteries solutions for personal and public transportation, either stay away, offer something different and or target its weaknesses.

It's better to face the realities of business predators like Amazon and Telsa, rather than ignoring them or running away because there’s no escaping or hiding from these outside disruptors. They’ll eventually catch you.

Wayne A. Roberts is a global marketing and communications leader specializing in helping organizations achieve accelerated growth and success through orchestrated change. He can be reached at [email protected]