What Happens When Companies Ignore Low-Disruption Competitors?

by Nino Razmadze CEO & Founder of Accelaret

In the business world, competition is inevitable. Companies often focus on the big players—those that seem to pose a direct threat. However, there’s a different kind of competition lurking in the shadows: low-disruption companies. These smaller, quieter competitors may not make immediate waves, but over time, they can evolve into a serious threat. If businesses overlook these emerging players, they might find themselves blindsided when it’s too late.

This concept became especially clear to me during a class at Harvard, where we examined real-world examples of companies that ignored the potential of low-disruption competitors. These were companies that started small—niche players with limited reach—but gradually grew stronger by leveraging overlooked opportunities, more agile operations, and evolving consumer preferences.

The Danger of Underestimating Small Competitors

One classic example of this phenomenon is how small startups disrupt established industries. When these new companies enter the market, they’re often dismissed as irrelevant. But the truth is, they start small for a reason: they’re targeting specific gaps in the market that larger players overlook. While established companies are busy focusing on their current customers or incremental innovations, these smaller competitors are using agility, fresh ideas, and lower overhead to innovate in ways that eventually make them formidable.

A good case in point is the rise of companies like Airbnb and Uber. Initially, both started as niche players in hospitality and transportation, respectively. Many big players in the hotel and taxi industries didn’t consider them a real threat. But these low-disruption competitors were able to identify and capitalize on inefficiencies in the market. They offered more flexibility and better user experiences, gaining a foothold in ways the larger, established companies failed to notice. By the time the big players realized what was happening, the disruptors were already too strong to ignore.

A Real Example: The Music Industry and Streaming

Another example comes from the music industry. Before streaming services like Spotify became dominant, the industry was primarily driven by CDs and digital downloads. Record labels and other major players didn’t initially see streaming as a major threat. Many even overlooked smaller platforms like Pandora and Deezer, which were gaining traction in niche segments.

Fast forward to today, and streaming has become the dominant model for music consumption, with platforms like Spotify and Apple Music leading the way. While record labels and traditional distributors focused on optimizing their old models, they failed to fully recognize the potential of streaming platforms until it was too late. The smaller platforms that once seemed like low-disruption competitors have now grown into industry giants, completely reshaping how people listen to music.

Why Ignoring Low-Disruption Competitors Is Risky

1. They Grow Faster Than Expected: Low-disruption competitors often start small, but they grow incrementally. Their growth isn’t linear—it’s exponential. Once they reach a tipping point where they have critical mass, their influence and market share can increase rapidly.
2. They Exploit Gaps in the Market: Smaller competitors are more likely to target gaps that larger players may not have noticed or may have overlooked. By focusing on specific customer needs or niche markets, they can create loyal customer bases and carve out profitable segments.
3. They Can Be More Agile: Smaller companies are often more flexible and nimble than their larger counterparts. They can quickly adapt to changes in technology, consumer preferences, and market trends. This agility allows them to innovate faster and keep up with changing demands, while larger companies may be bogged down by bureaucracy.
4. They Learn From Bigger Mistakes: Unlike their larger counterparts, small competitors can often learn from the failures of established companies. They’re able to adapt quicker and avoid making the same missteps that the giants made along the way.

The Missing Element: Business Operations to Track Disruption

One of the reasons why companies fail to notice low-disruption competitors is because they’re so caught up in their day-to-day operations. Businesses often focus on immediate issues: meeting current customer demands, fulfilling operational targets, and putting out fires. But in doing so, they overlook the broader picture—specifically, the emerging threats that could disrupt their business in the long run.

This is where business operations and strategic tracking come into play. Companies need to have a structured approach to monitoring potential disruptions. By setting up processes that allow for tracking emerging competitors, changes in consumer behavior, and shifts in technology, businesses can stay ahead of the game. This involves regularly reviewing the competitive landscape, identifying early signs of innovation, and fostering a culture that encourages forward-thinking.

Without a clear framework to track low-disruption competitors, businesses often get blindsided. By the time they realize what’s happening, it’s too late to catch up. This is why it’s essential for companies to integrate proactive tracking into their business operations, ensuring that they stay agile and aware of emerging threats, even when those threats don’t seem urgent at first.

Don’t Wait Until It’s Too Late

The key takeaway here is to always stay vigilant and never underestimate smaller, low-disruption companies. They might not seem like threats in the early stages, but their ability to adapt and innovate could ultimately turn them into major competitors. By the time you notice their strength, it might be too late to catch up.

If you’re a leader in a business, always stay ahead of the curve. Watch the small players, and ask yourself: What are they doing that we’re not? How can we adapt to avoid being blindsided? Being proactive and keeping an eye on these emerging competitors can help ensure you stay on top, even when the competition looks small and harmless.

The key to long-term success isn’t just about staying ahead of the big competitors—it’s about recognizing the potential of low-disruption players and making sure you never let them outpace you.