Disruptive models allow businesses to create new markets by focusing on new customer segments. Disruptive business models are categorized into two; low-end disruption and new-market disruption (Outsell Inc., 2014). Low-end disruption strategies are usually focused on stealing the cheap and worst customers from existing business in a given industry. Cheap products are a common characteristic of low-end disruptive business models (Braithwaite & Martin, 2015). For low-end disruptive models to be effective, existing business in the industry should be producing and selling at costs that are above what the market desires or needs. Costs, in this case, include both financial and non-financial. Flip digital camera companies are good examples of companies
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For instance, the company relies heavily on marketing and promotions to ensure its products are well received in the market. Retail store location is also an important to the company as a means of ensuring retail business success. The company’s stores are located in affluent areas to attract high-end customers in agreement with high-quality goods it produces. Gap is also running multiple brands at the same time as a means of ensuring success and cushioning potential losses from any one brand of cloth. Some of the company’s many brands include Gap, Banana Republic, Intermix, Old Navy and Athletica. It is common for the company to locate the different stores for different brands in the same location as a way of boosting sells across the different customer …show more content…
In a bid to ensure customers frequently shop in their stores, the company has invested a lot in store design. Each of the company’s stores is designed to fit the local surroundings. The company also produces new clothes in small batches as a means of creating an artificial shortage of the new designs. The artificial shortage usually creates a sense of urgency for the company’s customers to purchase available stock thus ensuring that the company’s stock always sells
For instance, the company relies heavily on marketing and promotions to ensure its products are well received in the market. Retail store location is also an important to the company as a means of ensuring retail business success. The company’s stores are located in affluent areas to attract high-end customers in agreement with high-quality goods it produces. Gap is also running multiple brands at the same time as a means of ensuring success and cushioning potential losses from any one brand of cloth. Some of the company’s many brands include Gap, Banana Republic, Intermix, Old Navy and Athletica. It is common for the company to locate the different stores for different brands in the same location as a way of boosting sells across the different customer …show more content…
In a bid to ensure customers frequently shop in their stores, the company has invested a lot in store design. Each of the company’s stores is designed to fit the local surroundings. The company also produces new clothes in small batches as a means of creating an artificial shortage of the new designs. The artificial shortage usually creates a sense of urgency for the company’s customers to purchase available stock thus ensuring that the company’s stock always sells