Why Startups Are More Successful than Ever at Unbundling Incumbents

Scale isn’t what it used to be. It’s never been easier to start a company, and as a result new entrants are unbundling incumbents’ businesses and chipping away at their advantage. Upstarts like The Honest Company, Warby Parker, and Airbnb are able to quickly win market share from leading businesses like Procter and Gamble, Luxotica, and Starwood Hotels by decomposing markets into highly customized niches so that the incumbents can’t compete on scale alone. And by now it’s clear that these companies are well positioned to achieve greater success than originally envisioned, and may displace many of the Fortune 500 brands over the next decade or two.

Read more at hbr.org.