Difficulty 3: - Conflicts with the Core Business

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Transcript

And the final difficulty is is that they are called disruptive for a reason and they conflict with the core business. And what do I mean by conflict? There are all kinds of conflicts. The first example is cannibalization of the core. This is like a Nespresso cannibalizing the Nescafe business. You might have distribution conflicts, and the way you distribute with the innovator may undermine the core business.

An example and we talk about this later could be like with Nyah Matt and Matt tronics. For example, is branding conflicts. Simply by going into the innovation you may undermine or dilutes the value of the brand of the core business. Finally, there may be incentive or cultural conflicts with your managers, internally. So in short, all kinds of conflicts can arise. And this is why I would call these innovations disruptive or disruptive to the core business because they do create those conflicts.

So he In short, we have a situation where we have an innovation. And normally when we hear the word innovation, we think about something good. And I've asked you, do you want to get into this innovation? The first reaction is Yeah, sure, why not? This sounds good. But actually, we have a situation where the innovator may grow or not grow.

Your existing customers don't want it and actually tell you, they don't want it. And your managers and distributors hated because it will undermine them. So the question then becomes, how can you grow such a disruptive business next to the core business

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