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An incumbent’s guide to digital disruption


By Chris Bradley and Clayton O’Toole, McKinsey.



- Companies often fail to recognize disruptive threats until it’s too late and, even if they do, fail to act boldly enough
- Our new framework helps executives at established companies assess their position and take appropriate action
- The right actions to take depend on whether disruption is detectable, clear, inevitable, or the new normal

A decade ago, Norwegian media group Schibsted made a courageous decision: to offer classifieds—the main revenue source of its newspaper businesses—online for free. The company had already made significant Internet investments but realized that to establish a pan-European digital stronghold it had to raise the stakes. During a presentation to a prospective French partner, Schibsted executives pointed out that existing European classifieds sites had limited traffic. “The market is up for grabs,” they said, “and we intend to get it.”1 Today, more than 80 percent of their earnings come from online classifieds...

More:
http://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/an-incumbents-guide-to-digital-disruption

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