Thinking Space

Another classical example how a business could be blind to disruption
(continuing from part 1)

Knickerbocker Ice company

Founding Year, 1831 – Employed 3000 people at peak, was one of the leading brand in Ice making business.

Early Nineteenth Century – Closed its door to public

Business model – Ice making

Found on the East Coast of the US, the Knickerbocker Ice Company was known for producing the cleanest and purest ice. As a result of this quality, the Knickerbocker Ice Company experienced significant growth. It expanded and acquired a network of icehouses to store the ice after harvesting and was one of the leading brand in this business.

Business model weakness
Blind to disruption by electric refrigerators that were coming.

Disrupter
During the early 1900’s the first refrigerators and freezers were invented.  Not only did these machines give homes and businesses the ability to keep food cool without the need to purchase ice, it also gave them the ability to make ice. So technology  enabled a new way of meeting customer needs, and  customers preferred this new way; refrigerators and freezers became commonplace in homes and businesses.

Ice traders like Knickerbocker were blind to this disruption and they all became victims of the disruption.