Disrupt Before You're Disrupted

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Increasingly, incumbent organizations in industries like academia, healthcare, and government are getting to the pointy end of disruption, where they must accelerate the transition from legacy business models to new ones (and even allow potentially cannibalizing businesses to flourish). Sometimes this requires a very deliberate two-speed approach where legacy assets are managed for cash, while new businesses are nurtured for growth.

Incubating Fresh Ideas Within A Legacy Organization

Legacy organizations with more inertia often experience the pace of change at a slower rate, with innovation occurring incrementally, set in motion over 5 to 10 year trajectories. This can often lead to larger organizations falling behind the innovation curve, launching ideas and products well past the inception phase, putting them well behind the fast, and even intermediate, followers.

Take the massive CPG industry for example, specifically food & beverage brands. Rather than relying on internal innovation initiatives that take allocation of ample resources (both time and money), many have shifted their focus and dollars into acquisition strategies, relying on smaller, nimbler organizations to do the innovating on their behalf.

With tides shifting into a tighter-capital market, this strategy is perhaps the most viable for both parties, acquirer and acquiree alike.

This is especially valid in the ultra-competitive, highly saturated natural products space. COVID-19 cancelled Expo West, the mecca of the natural foods world, sending exhibitors, buyers and retailers alike into a tailspin. Marketing plans and budgets dashed for the upcoming year (at least), if not shuttering the less capitalized brands for good.

COVID-19 has had unprecedented impact on CPG brands, navigating a jump in demand, in part due to panic buying amongst other reasons, and overall impact on supply chain and demand planning. The good news is the shift of many consumer dollars into CPG’s pockets with sales skyrocketing week-over-week by over 15 times the typical rate of change.

Implications & Predictions: Turn To E-Commerce

For both entrepreneurs and large CPG brands alike, now is a great time for brands to experiment with e-commerce. We predict that this is a lasting effect that is here to stay, disrupting our purchasing models for good.



To The Little Guys

Keep on disrupting, addressing passions, consumer needs, and sustainability initiatives. Do what you do best: work hard, work fast and work small while thinking big and looking to e-comm as an opportunistic way to launch products without having to pay slotting fees at grocery stores.  



To The Big Guys

Market sentiment is rapidly evolving day after day and it’s important to keep an ear close to the ground to stay ahead of the likely massive shifts ahead. A new era of consumer and purchasing behavior is upon us with e-commerce shopping and a disproportionate amount of grocery volume going to nontraditional channels. Act now, in a break-neck rate of change, because you can’t afford to “wait and see.”


Will your brand disrupt or be disrupted?

Check out our new brand solutions packages, bundled offerings to help your business pivot and define a strategy for the back half of 2020.

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