Market Disruption

Demonstrating an improved market reality.

As an improved market reality brought about by an emerging system gains attention and traction with early adopter it also begins to attract initial attention and early investments from the sustained market. When this occurs, the disruption phase of the market-cycle has begun.

Sustained player migration from sustained systems to emerging systems is a significant market event, as sustained players must scale and adopt a new set of market principles to realize the improved reality. Many will also find themselves abandoning or slighting existing, even profitable, market investments to move to the emerging system. The costs, risks and other exposures associated with change will cause many sustained players to delay entry, waiting for the optimal time to take action. Many will pay a high price for acting too late.  

The path from activation to disruption is also a critical time for the emerging system, as the operating principles which proved successful for attracting and serving emerging market players prove anemic for attracting and serving the larger sustained market. Migrating from emerging operating principles to sustaining marketing principles is a critical task every emerging system faces to metamorphose into a full-fledged sustained market player. Emerging systems which fail to conceive sustaining market principles find they are unable to cross the chasm into the sustained market, and watch as the newly activated capacity is claimed and commercialized by more adept systems. The systems who are able to conceive of sustaining market principles will create the market-epiphany neccessary to trigger the release phase of the market-cycle. 

The Market Discipline behind Emerging Operating Principles and Sustaining Market Principles in explored in Creating Markets.