Companies whether large or small set targets for growth and their aim is to make positive, profitable growth. #3EA Read more at: http://3rdeyeadvisory.com/know-how/disruptive-business-model-and-their-sustainability.php

1. Disruptive Business Model and Their Sustainability
By Sahil Garg, 3rd Eye Advisory Ltd
Image Source: Fostec & company research

2. Companies whether large or small set targets for growth and their aim is to make positive, profitable
growth. Today's business world is extremelysaturated. Pickanyniche and you'll see multiple companies
fighting each other for dominance. When the markets are so competitive, a business needs to do
something really unique to stand out. It needs to innovate, understand its potential customers, and cater
to their wants even before they realize them. It needs to disrupt the market.
Image Source: Fostec & company research
Disruptive business models will place their main focus on creating, disintermediation, refining or
reengineering a product or service. Companies that incorporate the disruptive business models have
distinctive competitive value. They make use of the models to crush all their competitors and remain at
the top in the industry. Disruption in any sector will change how competitors are operating, they will
tend to change their strategies to survive as well as compete with the disruptive business model.
Disruptive models give firms competitive advantage from their rivals, helping them to maximize
interests of all their stakeholders in the organization.
On Demand Model - This business will disrupt the market by monetizing time. They want to provide
instant access to business products & services but charging premium price for their services. This model
creates valueadditionbymakingaccess toservices toits targeted customers.Uber has createddisruption
in the transportation sector using on demand business model.

3. Hypermarket model - Nowadays organization are disrupting byoffering products & services at a price
lower than maximum retail price. This require high investment initially, by using economies of scale
theycan acquire huge chunk of market share and crush all their competitors. Organizations will Amazon
& Walmart has implemented this business model to disrupt market.
Subscription Model - This business model provides certain resources & information by paying small
subscription fee to get access of the service. Pricing of subscription is done based on tenure like monthly
basis, half yearly basis & annual basis. This model help organization to make recurring and sustainable
income. Companies like Netflix, hotstar, Amazon Prime video use this model.
Free model - In this model, organization provide access to their core products to large group of users.
Then premium products are made able to small fraction of customers by charging premium price. This
creates large user base & help organization in word of mouth marketing. Facebook, LinkedIn uses this
model to create large network of users.
Pyramid Model - In this business model, companies will recruit large number of resellers or affiliates.
This kind of model helps firm drastically scales up their organization salesforce, its helps in creating
large community & get benefits by leveraging product communities. Affiliates/resellers are paid on the
commission basis of products & services sold by them. Ecommerce firms like Amazon, Flipkart,
GoDaddy has successfully implemented this business model to reach out their targeted audience and
increase sales revenue.

4. Image Source: blokboek.com
Disruption is all about risk-taking, trusting your intuition, and rejecting the way things are supposed to
be. Disruption goes way beyond advertising, it forces you to think about where you want your brand to
go and how to get there.
Disruptive innovations have transformed society through the ages, however the real challenge for all
disruptive business models is to sustain their model for the long run for the benefit of society at large.
Sustainability is one of the main drivers for disruption today because the world needs to deal with
environmental and social issues. Sustainability will become increasingly important to avoid unforeseen
consequences of the disruptive business models. consumers want sustainability in both products and
organization strategies. Study says 97% of CEOs believe sustainability will be important to the future
success of their business.

5. To implement sustainability (for building long term relationship) in their disruptive business models,
organizations should look at following 4 perspectives for reap out long term benefits from their
business.
1- Economic perspective
2- Market perspective
3- Social perspective
4- Environmental perspective
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