The word “disrupter” is used to describe a company that comes in and disrupts the marketplace. It can disrupt a single competitor or an entire industry. For example, a Walmart opening in a small town disrupts the local businesses, often putting them out of business. Home Depot disrupts local independent hardware stores. Uber disrupted the taxicab industry. And, of course, Amazon disrupted the traditional retail book stores and, eventually, the entire retail industry.
It’s interesting how some refer to the concept of a disrupter. Some see the label as a badge of honor. Others see it as a derogatory description of a company who wreaks havoc on the marketplace. However you view it, you can’t ignore it. Competition will always be a part of business. Whether it’s head-to-head competition or something more, the word “disrupter” is simply the word used to describe the one that’s winning in any market.
That brings us to the 2018 Disrupter 50 list of companies compiled by CNBC. There are plenty of recognizable names on the list, such as Uber, Airbnb, Lyft, and others. And there are plenty you won’t recognize. There are companies in biotech, transportation, retail, and more. The number one company on the list is SpaceX, a company focused on space exploration.
What intrigued me about this list is I didn’t see Amazon. In my opinion, Amazon has majorly disrupted retail (for years) and continues to do so. Their push to innovate in their industry builds momentum, as does their push to increase the number of Amazon Prime memberships. If there ever was a disrupter that could be considered a household name, it is Amazon.
So, who is disrupting Amazon? Can Amazon be disrupted?
Let’s jump back to 1983 when Tom Peters and Robert Waterman wrote the number one bestselling book, In Search of Excellence: Lessons from America’s Best-Run Companies. The authors listed 43 companies they felt were worthy of being referred to as excellent. I loved this book (and still do), but maybe it’s time for an update of the list. Today some of those companies have disappeared off the corporate landscape. They have been merged or bought by rivals and conglomerates. Or, they slipped into obscurity by not staying relevant or being disrupted by a competitor.
These 43 companies were the authors’ picks of the best of the best! Companies like Walmart, McDonald’s, and Intel were on the list and are still iconic brands of the present day. While some of these companies are still around and doing well, others might not be so fortunate to make the list if Peters and Waterman were to do an update. Some have not done well, some have been acquired by others, and a few have completely vanished from the face of business. Do you remember Wang? Or how about Atari?
The point is that even the best brands can fall. They succumb to economics, the changing behaviors of their customers, or disruptive competition. The list is long and includes brands that we all know well: Polaroid, AOL, Kodak, Circuit City, Blockbuster and Sears, just to name a few.
For companies like Amazon, Apple, and Walmart to stay at the top of their game means having a constant focus on innovation, understanding what their customers want (sometimes before they know they want it), and having a good competitive business sense. Sure, it takes more to be successful, but without the innovation component, you don’t give yourself the opportunity to grow.
Without understanding what your customers want, you create a disconnect that will cost you business. Without a good competitive business sense, you’ll risk being disrupted by a competitor who’s more customer-focused. I wrote an article about this very issue based on an anonymous quote: Uber your business before it gets Kodak-ed.
So, can Amazon be disrupted? I doubt it will happen—at least not in the foreseeable future. Amazon knows there are companies that are coming up with new and innovative ways to deliver a better customer experience. They watch, listen, and learn from other companies and their customers. Most importantly, they continue their practice of innovating every part of their business – especially the customer experience.
