FIVERR DOLLARS – $50 – $100 A DAY
Disruptive Innovation in Marketing
I received an email from Dr. Marcus Blakemore about a truly fascinating website called Fiverr.com. At first, I was truly skeptical because freelancers like technical writers & web designers were offering their services for $5. In fact, these services were listed well below market prices. Yet, the website moreover offers bizarre services, like someone composing something on his or her lips & a person dressed in a clown suit willing to transmit greetings to anyone. Loaded with my conventional wisdom of ‘you obtain what you pay for,’ I gave the website a chance. Through this effort, I found some vendors were outstanding while others were mediocre.
Amazingly, the owners of Fiverr.com had created a niche for themselves with freelance websites, such as Elance.com or Guru.com. However, a new value proposition was moreover developed. For experienced sellers, Fiverr.com provides a promotional venue where they can sell more expensive services down the product line, newcomer sellers can turn their hobbies into financial gains, & value-seeking customers can secure some quality services well below market value. Yet, Fiverr.com was disruptive to the conventional way of marketing a freelance service.
With the pressures of globalization entirely around, organizations must understand disruptive marketing & innovation in order to sustain future success.. Market disruption is never a friend to managers who are traditionalists & are risk adverse to change.
Market disruption relates to a situation where markets cease to function in a conventional manner, typically characterized by rapid & big market declines. Yet, disruptive innovation must be on every business’s radar. For our discussion, we use disruptive technology & disruptive innovation interchangeably. Disruptive innovation relates “”to innovations in products, services, or processes that radically changes an industry’s guidelines of the game for producers & consumers.” There are tons of examples where low technology products or services have come from nowhere & beat out an industry leader. Clayton Christensen, author of The Innovator’s Dilemma, has chronicled how prosperous businesses have been overtaken by little disruptive innovations. He further argues the changes associated with disruptive innovation: Careful planning, followed by aggressive execution, is the correct formula. But in disruptive situations, action often must be taken before careful plans are made. Because much less can be known about market changes, or how shortly they will happen, organizational planning must serve a truly different purpose: Businesses must use their plans for learning rather than plans for implementation.
For example, Netflix developed a niche of videos through direct mail, or later, online, that shell shocked the industry leader, Blockbuster, & sent them spiraling downward. When Blockbuster realized what was happening in the market with Netflix’s disruptive innovation, it was already too late. Mapping out disruptive marketing is not easy. It requires companies to change. Richard Daft, author of Management, notes, “Successful alter requires that organizations be capable of creating & implementing ideas, which means the organization must learn to be ambidextrous.” This action is not easy. Consequently, companies must be ever ready to rapidly adapt to changes while surveying the market for disruptive innovation over the horizon.
© 2013 by Daryl D. Green
Management by Richard Daft
The Innovator’s Dilemma by Clayton Christensen