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Venture capitalists and founders at a recent TechCrunch Disrupt conference. Are the those who disrupt about to get disrupted?
Scott Anthony, who runs venture investing for Innosight — a consulting firm founded by the founder of "disruptive innovation," Clayton Christensen — has applied the master's lessons to the venture capital space at Harvard Business Review's blog. Like a lot of folks, myself included, he takes a recent Kauffman Foundation report as his starting point.
And then he effectively deploys Christensen's best-known concept to explain why venture capital — and particularly big VC funds — isn't performing as well as an investment class as it has in the past. The way disruptive innovation works is that in an established industry, a new player will enter at the low end and wind up disrupting the major players.
A good example might be Japanese carmakers attacking first small motorcycles and later small cars, then moving up the food chain to make plenty of trouble for Ford and General Motors. More recently, you could argue that Instagram did this to Facebook by creating a lightweight mobile photo-sharing app that was so easy to use that it acquired 50 million users practically overnight.
Here’s a story we’re following closely at SCPR/KPCC: the possibility of a strike by grocery workers in Southern California: 62,000 of them, who work at Ralphs, Vons, and Albertsons stores. Over the weekend, the United Food and Commercial Workers union voted to authorize a strike -- which isn’t the same thing as going on strike. But it does set the stage.
The last time there was a strike, in 2003-04, it didn’t go well for the the major unionized chains. This from the LA Times:
The drawn-out negotiations has area grocery workers nervously recalling the bitter debate over wages and healthcare benefits that led them to the picket lines seven years ago. In fall 2003, the labor dispute led to a contentious 141-day strike and worker lockout that affected hundreds of California grocery stores.