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QuestionsCategory: Business QuadrantAvoid Disruption
chia hui mah asked 11 months ago

Should we really avoid industries that can be easily disrupted? E.g. Tech companies can be easily disrupted, but they can also act as disruptors to certain industries. I was thinking that shouldn’t we look for disruptors too? Or is it really hard to identify a disruptor?

2 Answers
Victor Chng answered 11 months ago

Hi Chia Hui,
As mentioned in the videos, those easily disrupted industry are usually hardware business. If you look at those tech companies that is disrupting the industry are mostly software business that is more sticky and harder to disrupt. 
Yes, you can look for disruptors. It is not hard to find them. Just go to any industries and find those companies that are being disrupted and see who is disrupting them. Looking from this angle can help you find a lot of investment ideas.

chia hui mah replied 11 months ago

thanks for the tip victor!!

Victor Chng replied 11 months ago

Welcome Chia Hui :)

Viv answered 11 months ago

How is it that the business of Coca Cola is not affected when there is a shift in trend towards healthy lifestyle? 

Victor Chng replied 11 months ago

Hi Vivien,

You are right Coca Cola’s business is being disrupted by the trend of consumer avoiding sugar. This is also the same reason why company like Fraser and Neave (listed in SG) is not doing well in recent years.