For each company I asked:
1. How disruptive is their business model?
(The golden standard is a business model so disruptive that incumbents can’t mimic it as it would cannibalise their business)
2. How successful was the company Vs. the incumbents?
Here’s what I found:
👯 Most of the companies that you know and love today have at least an above-average level of business model innovation
🏆 The best at disruptive business models (e.g. Uber) have held off incumbents incredibly successfully
📈 Disruptive business models and success are highly correlated
🟰 They’re equally important for B2B and B2C
📆 They’re getting more important over time - successful companies founded in recent years are focusing more on their business models
🙅 You don’t need the most disruptive business model in the world BUT if you don’t innovate on this part of your startup, you do need:
- A brand that customers really love (e.g. Webflow)
- Or you’re a very well-established multinational with patents and significant economies of scale (e.g. Merck)
My main takeaway: As a startup, you're unlikely to beat the market leaders if you're using the same business model.
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