The case of chotukool

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The case of chotukool

  1. 1. The Story of Chotukooland The Theory of Disruptive Innovation Annie Ruan
  2. 2. • Disruptive innovation (DI) is defined as “a process by which a product or service takes root initially in simple applications at the bottom of a market or in a new market, and then relentlessly moves ‘up market’, eventually displacing established competitors”.
  3. 3. Incumbents nearly always winPerformance Entrants have advantages (low-end and/or new markets) (inferior; other unique features) Time
  4. 4. Key features of DI• inferior performance on attributes that mainstream customers value at the time of product introduction• new features appreciated by low-end or new/niche customers (typically cheaper, smaller, easier to use, etc)• “disruptive” rather than “sustaining” to all the significant incumbent firms
  5. 5. Innovator’s solution• Using “Job-to-be-done Market Analysis” to Gain a Disruptive Foothold – compete against non-consumption and find non-consumers• Disruption is facilitated by “Good Enough” technology that makes things more idiot-proof – simplify the functions which are only used by techies• Initiate changes from the TOP and set up a separate business unit to protect the DI ideas
  6. 6. Godrej and Christensen• The DI workshop and Innosight• The idea and R&D of Chotokool
  7. 7. Portable Refrigerator (Miniaturization) Chottucool’ by Godrej and Boyce’ C’• Designed for people of rural areas in India.• Priced at $69 (worlds cheapest fridge)• No compressor, Only Cooling chip and a fan run on batteries• 20 Parts• Involve villagers right from the design to selling of the product. 7
  8. 8. Value Proposition & Target Market• Portable• Top-opening unit weighs only 7.8kg,• Uses high-end insulation to stay cool for hours without power• And consumes half the energy used by regular refrigerators• Target MOP Market 8
  9. 9. • Business Model – Partnering with NGOs to create community entrepreneurs to sell Chottu Cool.• Target market — • From pan wallahs, food sellers to flower sellers to even the rural homes gives some idea of how profitable this innovation could be.• Refrigerator penetration is only 18% of the total population, there was a huge potential market.• The difficulty in cultivating a DI• The competitive advantage of Chotokool 9

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