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To Disrupt or Not to Disrupt?
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To Disrupt or Not to Disrupt?

Disruption isn’t always the right strategy for startups. It’s a choice.

Joshua Gans
MIT Sloan Management Review, 2020
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Editorial Rating

8

Qualities

  • Analytical
  • Applicable
  • Well Structured

Recommendation

Market disrupters enter a market with a new or cheaper product hoping to capitalize on a weakness found in a traditional business – perhaps customers looking for cheaper or more convenient alternatives. Disruption is a choice, however, and opting to work with a legacy company can offer substantial benefits. Entrepreneurs should consider the strategies outlined by Joshua Gans in MIT Sloan Management Review. Gans offers a logical approach for entrepreneurs to weighing alternative, and often more successful, strategies to the path of disruption.

Take-Aways

  • Market disrupters aim to capitalize on vulnerabilities in existing businesses.
  • Disrupting incumbents isn’t the only choice: Creating alternative business plans can highlight the benefits of cooperation.
  • The strategy isn’t necessarily final: Entrepreneurs can choose to pivot from one option to another.

About the Author

Joshua Gans is a professor of strategic management and holds the Jeffrey S. Skoll Chair of Technical Innovation and Entrepreneurship at the Rotman School of Management at the University of Toronto. 

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