Disruptive strategy is becoming more of a norm than discussion. How can you apply it to your business. See one of my lectures do justice to the topic at Strategic Business Master Class.

1. Idea Strategist & Chief Executive Officer
Troggeurban Limited
By David Lanre Messan
Disruptive
Strategy
Understanding how your strategy
impacts your bottom-line and how
you can use it to maximize your result.

2. To be in the 1%, you have to do
what the 99% wont. This is the
beginning of disruptive strategy.
We must strain every day to replace
what we produced yesterday …that
is the beginning of innovation
01By David Lanre Messan
Disruptive Strategy

3. Take risks; Try lots of ways; Flip your plan,
start from the end; Solve simple everyday
problem; Grow with each approach; Find
what inspires you; Learn more about your
failures; Continue to explore where you
are; Take time to think; Ask random
people about things; Be open to ideas;
Boldly express an idea; Press into an into,
draw it out, share it, rework it; Embrace
change with an excited heart; Be open to
the process; Identify every way to im-
prove every aspect of your business;
Pursue innovation, don’t wait for it to
come; Reach beyond your own abilities.
Before disruption,
innovation was.
One line that describes
innovation your way.
02By David Lanre Messan
Disruptive Strategy

4. Business strategy describes a series
of decision that are made by the
management of a company in order
to obtain or maintain a competitive
advantage over a period of time. It
shows the overall direction of the
company. It is also future focused
and contains long-term sustainable
goals.
Let’s
Learn
Business
Strategy
03By David Lanre Messan
Disruptive Strategy

5. A good business strategy will have
the following characteristics:
A clear direction of where the company is going
and the steps necessary to execute the decision.
An understanding of what the company’s core
competencies are currently, as well as what
competencies need to be developed in the future.
Will solve marketplace demand and address real
customers need.
Will contribute to a sustainable competitive
advantage.
Will be properly documented but flexible enough
to change according to the environment.
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Disruptive Strategy

6. 1. Cost Leadership
2. Product Differentiation
3. Market Segmentation
The 3 Best
Strategies
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Disruptive Strategy

7. COST LEADERSHIP
This strategy is similar to the Walmart
model. The company focuses on building a
large market share by providing prices that
are lower than its competitors. Typically,
such customers are less loyal and are more
price-sensitive. To succeed at offering the
lowest price, but still maintain profitability
and a high return on investment, the com-
pany must operate very efficiently. As such,
the company must be able to control its
operational cost tightly.
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Disruptive Strategy
1

8. 07By David Lanre Messan
Disruptive Strategy
3 Main Ways To Achieve
HIGH ASSET TURNOVER
This means how fast a company can sell its
product. Or if it’s in the service industry how
fast can the business finish providing services
for one client and move onto additional
paying client. These approaches mean that
fixed costs are spread over a larger number of
units of the product or service, resulting in a
lower unit cost i.e the firm hope to take ad-
vantage of economies of scale and experience
curve effect.

9. INDIRECT OPERATING COST
The key focus is to control cost. This is achieved
by offering high volumes of standardized
products, offering basic no frill products, and
limiting no frill customization and personaliza-
tion of service. Production costs are kept low by
using fewer components.
SUPPLY PROCUREMENT CHAIN
This could be achieved by bulk buying to enjoy
quantity discount, squeezing suppliers on price,
instituting competitive bidding for contracts,
working with vendors to keep inventories low
using method such as Just-in-Time purchasing or
Vendor-Managed Inventory.
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Disruptive Strategy

10. PRODUCT DIFFERENTIATION
This strategy requires the company to develop
products that are “Better than” or “More Unique
Than” its competitors. The main focus is to dif-
ferentiate itself from its rivals. Such differentia-
tion factors can be higher-end quality materials.
Better customer service, more unique company
image or branding, or other customer focused
values. Typically, companies pursuing this strat-
egy can charge premium pricing, since their cus-
tomer tend to be more loyal and less price-sensi-
tive. A negative side to this strategy is that in
order for the market place to recognize such dif-
ferentiation, a large amount of advertising
money is typically spent.
09By David Lanre Messan
Disruptive Strategy
2

11. MARKET SEGMENTATION
Market segmentation is simply focusing on a niche
or sub-market to sell your products or services to.
This strategy is best when you are competing in an
overly saturated market. For example, the gift
basket industry is highly competitive and overly
saturated. If you choose to enter the field, you
might choose a product differentiation strategy
and combine it with an appropriate market seg-
mentation strategy. Hence, you might focus on
selling high-end products to the wedding market.
As such, your gift basket might sell high-end crys-
tal champagne glasses specifically targeted to the
bride and groom.
10By David Lanre Messan
Disruptive Strategy
3

12. HOW TO CREATE THE
STRATEGY
Stage 1:
Identify key strategic factor you want the business
to focus on.
Stage 2:
Utilize strategic analysis tools, like the SWOT
analysis, Balanced Scorecard, BCG Matrix etc, to
analyze both internal and external factors of your
business.
Stage 3:
Weigh the attractiveness of the various strategies
and decide on which is most advantageous for the
company to pursue.
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Disruptive Strategy

13. Strategic Vision must
be matched with
strategic action.
If it must be disruptive,
you have to be highly
driven by strategic thinking,
vision and action.
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Disruptive Strategy

14. The Term Disruptive Strategy
An innovation that creates a new market and
value network and eventually disrupts an existing
market and value network, displacing established
market leading firms, products, and alliances.
A process that destroys the alternative in the
common field of play with entirely new concepts
across products, pricing, paradigms, processes
etc.
My Definition
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Disruptive Strategy

15. Success
Stories
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Disruptive Strategy

16. Look At Your Business and
List TWO, THREE or FOUR
Things that, if you changed
them, it really wouldn’t be
the same business or same
experience.
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Disruptive Strategy

17. Red Ocean strategy challenges companies to
break out of the red ocean of bloody competition
by creating uncontested market space that makes
the competition irrelevant. Instead of dividing up
existing – and often shrinking – demand and
benchmarking competitors, blue ocean strategy is
about growing demand and breaking away from
the competition.
The only way to beat the competition is to stop
trying to beat the competition. Value Innovation
is the secret weapon of blue ocean strategy, which
is to focus more on creating value for the buyers
and your company through technology-driven,
market pioneering or futuristic concepts.
16By David Lanre Messan
Disruptive Strategy
Red Ocean
Strategy
Blue Ocean
Strategy
Vs

18. 17By David Lanre Messan
Disruptive Strategy
Red Ocean Blue Ocean
Compete in existing market space Create uncontested market space
Beat the competition Make the competition irrelevant
Exploit existing demand Create and capture new demand
Make the value-cost trade-off Break the value-cost trade-off
Align the whole system of a firm’s
activities with its strategic choice
of differentiation or low cost
Align the whole system of a firm’s
activities in pursuit of differentiation
and low cost

19. 18By David Lanre Messan
Disruptive Strategy
Conceive A New Market Space
Value Innovation
Look Across Time
Look Across Functional or Emotional Appeal
To Buyers
Look Across Complementary Product And
Service Offerings
Look Across The Chain Of Buyers (Purchasers,
Users & Influencers)
Look Across Strategic Groups Within Industries
Look Across Alternative Industries
Value Curve (Focus, Divergence, and a
compelling tagline that speaks to the market)
The Characters
of Disruptive
Strategy

20. Vision: There cannot be a successful disruptive strat-
egy without a vision. You must possess an informed
and forward-thinking statement of purpose. A vision
tells us why an enterprise exist, its raison d’etre.
Understand The World: By observing and under-
standing other people and how their needs, desires,
interests, values, and tastes change over time.
Service: serving other people by making their lives
better
Business Style: Developing a business style that ex-
presses your own dreams and passions even as it
serves the needs of others.
Curiosity: This is the first step to building a successful
enterprise. This distinguishes great entrepreneurs
Strategic Thinking: The first task of the thinking
person is to separate out what is meaningful from
what is meaningless.
19By David Lanre Messan
Disruptive Strategy
Thinking
Forward

21. Functional Value
Emotional Value
Low Cost
Complementary Product
or Service
Differentiation
Adopting Your Own Focus
Disruptive Strategy
20By David Lanre Messan
Disruptive Strategy

22. 21By David Lanre Messan
Disruptive Strategy
To craft a new value curve for your business,
there are four key questions to challenge an
industry’s strategic logic and business model:
The Four Action Framework
Which of the factors that the industry takes
for granted should be ELIMINATED?
Which factors should be REDUCED WELL
BELOW the industry’s standard?
Which factors should be RAISED WELL
ABOVE the industry’s standard?
Which factors should be CREATED that the
industry has never offered?

23. Key Take Away
22By David Lanre Messan
Disruptive Strategy

24. Be reminded that an entrepreneurial spirit is
built on and sustained with curiosity, and that
curiosity is fed by anything and everything
around us. Business is an adventure and the
best adventurers always win through the art of
observation. To be a leader in the market, you
have to be in the market yourself and feel the
people, and this market includes those who are
inside and outside.
In Conclusion
23By David Lanre Messan
Disruptive Strategy

25. Email: ceo@troggeurban.com
Phone: 08035776246
Website: www.troggeurban.com
Contact Me
24By David Lanre Messan
Disruptive Strategy

26. THANK YOU
By David Lanre Messan
Disruptive Strategy