September 16, 2025
Key Takeaways:
In our first two articles (Click the links for Part 1 and Part 2 if you have not checked it out!) of our Resilience series, we examined what it means for businesses to withstand shocks and adapt under pressure while taking inspiration from microbes and learning about how they’re the most robust organisms on the planet.
In the third and final installment of our Resilience series, we explore how businesses can navigate and thrive amid today’s market disruptions. Because let’s be clear: disruption is not a possibility, it is a certainty. Companies that fail to acknowledge this reality do not just lose market share, they vanish.
In today’s fast-changing world, market disruption can arise from literally anything, from emerging technologies, new business models, changing consumer behaviours, regulatory shifts, and global crises. Recognising and responding to these forces is not just smart strategy; it is essential for survival.
Consider Borders, once a dominant bookstore chain. It was blindsided by a small online retailer called Amazon. Unlike Amazon, which invested early in e-commerce, digital distribution, and later e-books, Borders doubled down on its brick-and-mortar stores and even outsourced its online sales to Amazon itself. By failing to build its own digital capabilities, Borders left the door wide open for its competitor. That once-overlooked online retailer went on to redefine an entire industry, while Borders faded into irrelevance.
Trending Disruptors in Today’s Market
The first thing many organisations think about these days when it comes to disruption is artificial intelligence (AI). Many organisations are racing to integrate AI into their processes, products, and services. AI is reshaping markets by streamlining complex workflows, tailoring experiences to individual users, and accelerating decision-making across industries.
From generating content and enhancing customer service to supporting medical diagnoses and optimising logistics, AI is redefining how companies operate and compete. Those that adopt AI are not only improving efficiency but also gaining a strategic edge, while those that resist risk falling behind, or even disappearing, in an increasingly intelligent economy.
As an analyst from McKinsey & Co. reported, “AI does not just automate tasks but goes further by automating cognitive functions… AI-powered software can adapt, plan, guide—and even make—decisions.” Businesses report substantial productivity and performance gains, including higher process efficiency, better decision-making, and stronger product offerings.
According to McKinsey& Co.’s latest State of AI survey, GenAI is most frequently deployed in marketing and sales, product and service development, service operations, and software engineering—the functions poised to deliver the greatest value In marketing and sales specifically, companies are not just seeing small improvements, they’re reporting measurable cost decreases, with a notable share of respondents indicating cost reductions of 10–19% or even 20%+ in these functions.
But AI is only one disruptor. The global shift toward sustainability and decarbonisation is equally transformative. Governments are tightening carbon regulations, investors are demanding ESG accountability, and consumers are rewarding brands with authentic sustainability commitments. From the EU’s Carbon Border Adjustment Mechanism to bans on single-use plastics in Asia, regulatory pressure is rewriting the rules of competition. Companies that proactively retool supply chains, adopt green technologies, and innovate around circular business models are not only reducing risk but also unlocking new revenue streams. Those that drag their feet, however, face rising costs, reputational damage, and the prospect of being regulated out of relevance.
What are the types of market disruptors?
In today’s volatile business landscape, disruption comes in many forms. While each type has its own triggers and impact, they often overlap, requiring leaders to understand and prioritise which forces to address first.
1. Technological Disruption
New technologies can render old ways of doing business obsolete almost overnight.
The arrival of the smartphone, spearheaded by Apple, displaced entire product categories: the Yellow Pages, traditional telephones, the Walkman, and even physical street directories all saw their relevance diminish as mobile devices integrated these functions into a single, portable tool.
Take the Yellow Pages itself. Once a household fixture and a billion-dollar brand, its thick books were the gateway for customers to discover local businesses. But as smartphones put search engines into every pocket, the Yellow Pages’ relevance collapsed almost overnight. Usage plummeted, ad revenues evaporated, and the brand was forced into a painful transition, shifting from printed directories to digital listings just to stay alive.
Here’s the brutal truth: Yellow Pages didn’t choose to go digital; the market forced its hand when it was already too late. By the time they adapted, Google and online search platforms had already seized the customer relationship. That’s the fate of businesses that treat disruption as a distant possibility and want to wait till it’s more ‘imminent’: they don’t just lose ground, they lose the game.
2. Business Model Disruption.
Innovations in pricing, distribution, or revenue models can upend entire industries, even without a breakthrough in the underlying technology.
Netflix’s subscription-based streaming model, for example, fundamentally altered how consumers access and pay for entertainment. Instead of driving to a store, browsing shelves, and paying late fees, customers could enjoy unlimited content from the comfort of their homes for a flat monthly fee. That simple shift in model, removing friction and aligning with evolving consumer expectations, setoff a tidal wave of change.
Blockbuster, once valued at over $5 billion with more than 9,000 stores worldwide, failed to recognise the threat. They doubled down on physical rentals, earning billions in late fees even as customers grew frustrated by them. When they finally attempted to launch an online service, it was too little, too late. Netflix had already scaled, built customer loyalty, and secured a technological and cultural edge.
The result? Blockbuster, once a household name, filed for bankruptcy in 2010. Netflix, meanwhile, went on to become a $200+ billion global giant, rewriting not just how we consume movies and shows but how entire industries—from television to gaming—approach content.
Here’s the lesson: disruption doesn’t wait for your business to be ready. By the time Blockbuster acknowledged the shift, the game was already over.
3. Consumer Behaviour Disruption
Shifts in how, why, or where customers buy which are often driven by evolving values, lifestyles, or demographics can be equally transformative.
Pickleball’s rise isn’t just a passing fad, it’s encroaching on established sports like tennis. In Singapore, public pickleball court bookings have more than tripled since 2023, and there are now over 5,000 active players, with one in five competing in tournaments. As demand soars, facilities are rethinking their space: tennis courts are increasingly being converted into pickleball courts, since one tennis court can be split into three pickleball courts, offering higher utilization and stronger returns.
This shift carries real business consequences. Tennis coaching academies, equipment providers, and private clubs risk losing their traditional customer base as players, especially younger and casual ones, migrate toward pickleball’s lower barriers to entry and more social format. What was once a secure business model—tennis coaching and memberships—may find itself squeezed if it fails to adapt.
Similarly, Patagonia has built a premium brand by placing environmental conservation at the heart of its identity, appealing to a growing segment of consumers who prioritise sustainability in purchasing decisions.
4. Crisis-Driven Disruption
Unexpected events can trigger rapid and far-reaching change across markets.
The COVID-19 pandemic disrupted global supply chains, forcing businesses to adapt quickly. In 2022, Malaysia’s ban on chicken exports to Singapore left hawkers with only 30–80% of their usual supply, according to CNA reports, pushing some to consider closing or altering their menus. Singapore’s food authorities responded by diversifying imports to countries such as Brazil, the United States, Indonesia, and Thailand.
5. Politics and Regulatory Disruption
Government action or geopolitical events can abruptly reshape market conditions.
In 2019, when the U.S. placed Huawei on its Entity List, the company’s global momentum collapsed almost overnight. Huawei’s founder Ren Zhengfei admitted the ban would wipe out about $30 billion in revenue over two years, with overseas smartphone sales plunging 40% in a single month. The fallout extended beyond Huawei itself: U.S. suppliers lost $11 billion in annual sales tied to Huawei components, while the wider telecom industry saw revenues shrink and tens of thousands of jobs cut worldwide.
How do we overcome disruptions? (Scan-Prioritise-Adapt)
The most effective response to market disruption blends a top-down view of the landscape with a bottom-up execution approach. This ensures leaders capture the full spectrum of emerging threats and opportunities, while frontline teams can act quickly and adapt in real time.
1. Scan: Identify Emerging Disruptors
Start with a top-down market scan to detect early signals of change across technology, regulation, consumer behaviour, geopolitics, and environmental shifts.
Use analytical tools like PESTLE analysis, scenario planning, and competitor intelligence to map potential threats and opportunities. The aim here is to expand situational awareness by asking: What is changing in the landscape, and where could it impact us most?
2. Prioritise: Focus on What Matters Most
Not all disruptions carry the same weight. Once identified, rank them by urgency, potential business impact, and strategic relevance. Tools such as the Impact vs. Urgency 2×2 Matrix can help visualise which disruptors require immediate action versus those that can be monitored or deferred.
Risk Safari also uses animal metaphors to help categorise and communicate risk types:
These metaphors serve as mental shortcuts for identifying the nature of a risk before deciding its priority. As the original article’s author of the risk safari notes, “How you think about risks impacts your decisions.” In other words, the point isn’t to debate the right animal—it’s to improve the quality of risk thinking so organisations take “good” risks and manage potential downsides effectively.
3. Adapt: Respond Rapidly and Iteratively
Shift to a bottom-up approach, empowering teams to design and test solutions. Use rapid prototyping, micro-pilots, and agile squads to experiment, gather data, and refine ideas.
Real-world feedback should shape execution, ensuring responses are not only fast but also effective. Once a solution works, scale it. The question here is: How can we execute change effectively and turn disruption into a competitive advantage?
Case Studies: Who Thrived Amid Disruption?
In the early 2010s, Adobe faced a severe business model disruption. The rise of cloud computing was changing how software was delivered and consumed, while rampant piracy—particularly in markets like Asia, was eroding sales of its flagship boxed products such as Photoshop, Illustrator, and InDesign. At the same time, competitors were starting to offer cheaper or even free alternatives online, threatening Adobe’s long-term dominance.
Recognising that its one-time purchase model was becoming obsolete, Adobe made a high-stakes move in 2013: it stopped selling perpetual software licenses entirely and shifted its entire product line to a subscription-based model under Creative Cloud. This meant customers would pay a monthly or annual fee for access, receiving continuous updates instead of buying a new version every few years. The transition initially sparked backlash, longtime users disliked the idea of ongoing payments—but Adobe held firm.
What were their results?
The results were transformative. Within five years, recurring revenue jumped from less than 50% to over 90% of total revenue. Piracy rates dropped significantly because cloud-based authentication made illegal copies harder to use. Creative Cloud subscriptions also allowed Adobe to expand its user base to students, freelancers, and small businesses through affordable monthly plans. By 2022,Adobe’s annual revenue had more than tripled from its pre-pivot days, cementing its position as the industry leader in creative software and proving that a well-executed pivot can turn existential threats into long-term growth.
Conclusion
This article marks the conclusion of our Resilience Series. We’ve shown that resilience is critical, keeping your business steady when shocks hit, but resilience alone won’t save you. In today’s world, it’s not enough to bounce back; you need to be disruption ready. That means anticipating threats before they hit, moving faster than competitors, and turning upheaval into advantage.
The cautionary tales are clear: Borders, Blockbuster, Yellow Pages, once-dominant players that failed to adapt and paid the price. If your business waits until disruption arrives, it will already be too late.
At Binomial Consulting, we help companies get ahead of disruption—building strategies that don’t just defend market share but position you to win when the rules of the game change. Don’t wait for disruption to put you out of business. Contact us today and start building the resilience and readiness your future demands.
