Disruptive Company Mythology

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Disruptive companies are a journalistic myth attributed to those businesses that devise a business model that extends an established market to a encompass a segment that could not be satisfied through the traditional model. I call it a myth because once the business scales up to compete with status quo economic actors the legislative and regulatory rules by which the latter operate are imposed drastically increasing the cost of doing doing business, thus making them uncompetitive.

AirBnB, Uber, Aereo,… Are all challenged by entrenched players who have built and who defend their companies based on legislative and regulatory norms. If these disruptive upstarts want to play in their market then they must play by the rules.

To date, there is no disruptive business that has truly influenced the cost of doing business at scale. Nor will they.


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