Category disruption involves breaking traditional rules and innovating to alter the status quo. The disruption of established product or service categories is often driven by so-called ‘challenger’ brands that focus on human-centric innovation. Being agile is key – in order to create category disruption brands cannot afford to be slow or siloed in nature. Disruption is most commonly driven by the emergence of digital technologies, and the opportunities they bring to distribute products or rethink services.
Category disruption occurs when a disruptive innovation creates a new market and value network within a category and eventually disrupts an existing market and value network, displacing established market leaders and alliances.
1. Amazon has the credibility but not yet the brands to disrupt the grocery category
As it moves into online grocery, Amazon has introduced several own brands. While research found that Amazon has the consumer credibility to succeed in grocery, five Amazon own brands did not fare so well. Amazon scored highly for delivery capability, trustworthiness, ease of use and price but the brands themselves did not generate strong levels of trust, confidence or sophistication. And in product testing they generally lagged behind well-known brands.