SBM Master Paper The New Kids on the Block

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The New Kids on the Block Exploring the brand identity of disruptive innovators By: Jana Tigges, Bettina van der Stelt & Jessica Volk

Transcript of SBM Master Paper The New Kids on the Block

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The New Kids on the Block Exploring the brand identity of disruptive innovators

By: Jana Tigges, Bettina van der Stelt & Jessica Volk

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The New Kids on the Block Exploring the brand identity of disruptive innovators

Jana Tigges, Bettina van der Stelt & Jessica Volk

Abstract Aim: The aim of this paper is to examine the corporate brand identity of disruptive innovators that have changed entire industries. Moreover, this paper strives to answer the question, whether a universal pattern of corporate brand identities for these “New kids on the block” can be identified and if so, what it looks like. Approach: Firstly, a literature review is conducted in order to provide theoretical background in regard to the research question of this paper. Secondly, a qualitative multiple case study approach is used to understand the background and development of the investigated companies. Further, the corporate brand identity of each company was explored in order to identify significant similarities and differences. Thirdly, a corporate brand identity matrix for “New kids on the blocks” was established based on the universal commonalities of the brand identities. Findings: A universal pattern of disruptive corporate brand identities exists and is illustrated in a model matrix created by the authors. Originality/ value: The paper’s added value lies on the creation of a corporate brand identity matrix of disruptive innovators, here referred to as the “New kids on the block”. Keywords: disruptive innovation, corporate brand identity, technological shifts Paper type: Research paper Introduction First #GAFA - Google, Apple, Facebook, Amazon Then #BATX - Baidu, Alibaba, Tencent, Xiaomi Now #NATU - Netflix Airbnb Tesla Uber (Ferreiro, 2018) These acronyms are standing for the most disruptive companies of their times. Each one of them has changed an entire industry with its technological innovations. United by a market driving approach and a far-reaching vision, these companies managed to create new categories with outstanding success. However, do the innovations alone deserve all the applause for the companies’ success or is it also, partly owed to a strong corporate brand standing behind these organizations?

Indeed, literature provides evidence that a brand’s innovative technology alone, is not sufficient for a successful market driving strategy. In this context, Tarnovskaya & Elg (2012) argue that the unique combination of a market driving approach in connection with a strong corporate brand identity builds the driving force for a company’s success. In similar ways, Lawer and Knox (2007) emphasize that all managerial actions and decision are in line with the corporate brand of a company (Lawer and Knox, 2007). However, literature does not provide an answer to what the brand identity of disruptive innovators looks like and whether fundamental patterns within the brands DNA can be found. Therefore, this research paper will focus on the newest group of disruptive companies, namely Netflix, Airbnb, Tesla and Uber (NATU),

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which are here also referred to as the “New kids on the block”. The corporate brand identities will be individually examined with the aim of identifying common similarities and differences. This is done in order to solve the research question: If there is a universal pattern of corporate brand identities for “New kids on the block”, what does it look like? Literature Review With regard to the purpose of this paper, there are two superordinate factors important to examine. On the one hand, there is the market approach driven by innovation and on the other hand, there is the brand’s corporate identity, which are both crucial factors for disruptive innovators’ success. In order to understand these dynamics, relevant terminology will be shortly elaborated. Blue ocean method All companies examined in this paper used the blue ocean method to differentiate themselves from the competition. According to Kapferer (2012), companies that use the blue ocean method can be considered as innovators, who are able to create completely new markets. Consequently, the dynamics of these markets is not driven by the desire to outperform others as competition does not exist yet. However, innovations created in a blue ocean environment are always disruptive ones (Kapferer, 2012). Disruptive innovation A disruptive innovation is “[...] a process whereby a smaller company with fewer resources is able to successfully challenge established incumbent business.” (Clayton, Raynor & McDonald, 2018). By further extend, it is also a process, in which a new product or service outperforms an older one to create competitive advantage (Business Dictionary, 2018). Clayton et al (2012) define disruption as successful, when the product is bought by mainstream customers. Market driving approach

In order to revolutionize entire industries, companies are not only creating new markets by using the blue ocean method but also by implementing a market driving approach (Kumar et al 2000). Elg et al (2012) state, that a market driving approach “[...]implies influencing the structure of the market and/or the behavior(s) of market players in a direction that enhances the competitive position of the business.” Hence, firms, that are using the market driving approach successfully, do not simply adapt to temporary customer preferences. Instead, they are able to develop unique and new value propositions (Ghauri, 2014). The Corporate Brand Identity Matrix The corporate brand identity matrix (CBIM) is a framework that allows companies to understand and define its corporate brand identity, which describes the determining characteristics of an organization (Urde, 2013). According to Kapferer (2012) a “[...] corporate identity helps [...] an organization feel that it truly exists and that it is a coherent and unique being, with a history and a place of its own, different from others.” In fact, from a strategic point of view, Urde (2013) argues that by defining a corporate brand identity, management attempts to influence how the organization is perceived by internal and external stakeholders (Urde, 2013). The matrix takes both the outside-in and inside-out perspectives into consideration and thus balances a market- and brand-oriented approach (Urde, 2013). By focusing on the core of a brand, further internal and external elements need to be examined in order to formulate a strong corporate identity (Urde, 2013). The internal elements intended by the organization (sender) are defined in terms of three organizational attributes: its “mission and vision”, its “culture” and its “competences”, and relate to the company’s purpose of existence and inspiration, its work ethics and unique skills that differentiate itself from the competition (Urde, 2013).

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Illustration 1: Corporate Brand Identity Matrix

(Source: Urde, 2013) The external/internal elements can be considered as the soul of the brand that is driven by the brand’s core comprising its promises and supporting values, from which human characteristic of employees can be derived that represent and shape a unique corporate personality (Urde, 2013). Moreover, the way the company expresses itself and communicates with consumers is crucial for the company’s value of brand recognition (Urde, 2013). Finally, the external elements intend to reach the receiver outside of the organization and consists of a company’s value proposition, position and relationship (Urde, 2013). The value proposition relates to the company’s key offerings and how the latter appeals to consumers (Urde, 2013). This in turn, should have a positive impact on the relationship between customers and non-customer stakeholders, ultimately leading to a buying decision (Urde, 2013). Finally, the position element describes how the company intends to position itself in the market and in the minds of consumers (Urde, 2013). According to Urde (2013) the arrows symbolize a linkage between all nine elements. In fact, the author argues that “[i]n a coherent corporate brand identity, the core reflects all elements and every elements reflects the core.“, which highlights the interdependence of each factor being crucial for a strong organizational brand (Urde, 2013).

Methodology To start, a literature review was conducted in order to explain the external and internal driving forces that facilitate an innovative brand entry in established markets. The external view focuses on the market approach, while the internal perspective emphasizes the importance of a strong corporate brand identity. Furthermore, a multi-case study approach was conducted. Thereby, the paper investigated and analyzed four cases of new entry brands, namely Netflix, Airbnb, Tesla, and Uber (NATU), all of which have disrupted their respective industries. The multi-case study approach consisted of three parts. Firstly, case descriptions exploring the companies’ background and developments were established. Secondly, the corporate brand identity of each case was investigated. There are several models such as the brand identity prism developed by Kapferer (2012) that help managers to define a brands’ identity. Since Kapferer’s brand identity prism rather focuses on product brands, it does not serve as an appropriate framework for this paper (Urde, 2013). However, the corporate brand identity matrix developed by Urde (2013) considers internal and external components and allows the alignment of a corporate identity with its core and is therefore better suited for the purpose of this research.

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Thirdly, in line with Urde’s framework (2013), an overall corporate brand identity matrix of the NATU brands was established based on secondary research. Here, the secondary research conducted for the case studies as well as required additional sources were used. The additional sources are not stated in the text and are therefore indicated in the reference list as "NATU CBIM additional references". The NATU matrix and a following discussion helped to define common similarities and differences in order to identify whether a universal pattern exists and what it looks like. Finally, based on these shared characteristics, a “New kids on the block“ corporate identity matrix was constructed. On the one hand, this specific matrix, which is supported by indicative questions, may be used as a guiding tool for companies who would like to launch a disruptive brand. On the other hand, it will be helpful for brand managers defending established brands by taking industry development and future competition into consideration. The sources used for this paper were selected cautiously according to its date of publication, author, impact and credibility of websites. Case Description In this part, the evolution of Netflix, Airbnb, Tesla and Uber is described. The case studies focus on the development of the respective brand, the disruptive innovation of each company and the resulting technological shift within the industries. The case descriptions function as a solid basis, whereupon the corporate brand identity analysis is established. The Netflix case Netflix is an internet entertainment service and provides unlimited streaming of TV series and movies across different genres and multiple languages (Netflix Media Center, 2018). Members can enjoy watching movies on demand without commercial interruption on any internet-connected screen (Netflix Media Center, 2018).

Initially starting as a DVD rental business in 1997, Netflix offered its members access to unlimited DVDs via mail delivery service (Netflix Media Center, 2018). Netflix differentiated its online service from its main competitor Blockbuster, a significant chain that rented movies, games and TV box sets, by offering monthly subscriptions, thus making late fees redundant and unlimited DVD rental possible (BBC, 2018; Satell, 2014). Since Blockbusters’ business revenues relied heavily on late fee charges, Netflix forced its main competitor to alter its business model in order to stay competitive within the changing market (Satell, 2014). In 2000, the company continued to build upon its future leading position by introducing a movie recommendation system, which is based on members’ ratings in order to personalize movie choices (Netflix Media Center, 2018). This enables Netflix to suggest movies according to customers’ taste and preferences which creates a personal customer experience. Only seven years later Netflix pioneered with its streaming service and made it possible to watch television shows and movies on personal computers, ultimately changing customer’s consumption pattern (Netflix Media Center, 2018; Netflix Investor, 2018a). Shortly after, Netflix established partnerships with several consumer electronic companies, which enabled the company to offer its service on a wide range of devices such as the Xbox 360, Blu-ray disc players, PS3 or Apple iPad, iPhone and iPod Touch (Netflix Media Center, 2018). Consequently, these partnerships laid the foundation for Netflix global success and allowed the streaming of movies to anyone, at any time, and anywhere in the world. However, Netflix global success has intensified competition and companies such as Amazon Prime, YouTube and HBO have introduced media streaming services as well (Archer, 2018). Nevertheless, with its unique value proposition, Netflix seems to remain the streaming star in the digital content universe (Archer, 2018; Columbus, 2018). In conclusion, Netflix demonstrated to be a disruptive innovation by restructuring not only an entire industry but also by having the

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willingness to disrupt itself: from shipping DVD by mail and abandoning late fees, to streaming movies and TV shows digitally, to ultimately creating original content – the Netflix “Originals” (Taylor, 2018). Today, Netflix has 130 million subscriptions in over 190 countries and generates an annual revenue of 11.69 billion US. Dollars in 2017 (Netflix Media Center, 2018; Statista, 2018). The Airbnb case Airbnb Inc. is an online community marketplace, which gives consumers the opportunity to rent out a room or their home to travelers. While renting out homes is not a new idea, Airbnb created a peer-to-peer platform, which leverages technology to do it in an easier and safer way for both: the “hosts” and the travelers, called “guests”, who can select from a list of available housing according to their specifications (Meleo et al, 2016). Airbnb was founded in 2008 in San Francisco and initially launched as Airbed & Breakfast, a website that offered the renting of rooms (Airbnb Press Room, n.d.a). The idea started off a year earlier, when the two founders rented out air mattresses to earn rent during a conference when hotels were sold out (Airbnb Press Room, n.d.a). In 2009, the company changed its name to Airbnb and expanded beyond rooms to apartments, houses, and vacation rentals (Airbnb Press Room, n.d.a). Since its founding, Airbnb has become the largest provider of accommodations in the world by disrupting the hotel industry and is now more worth than major hotel chains (Gallagher, 2017). The rapid growth of Airbnb was enabled by its technology, which does not only facilitate the process for suppliers to rent their homes and find a match, but also provides the “hosts” with full flexibility on the time of rental (Roach, 2018). This allows Airbnb to extent its supply at peak times with a high demand for accommodation, for instance during public holidays or big events (Roach, 2018). Furthermore, the “hosts” can establish own prices for their accommodation, often offering travelers a cheaper alternative to hotel rooms (Farronato and Fradkin, 2018). However, it is

not only the supply-side flexibility that helped Airbnb to differentiate itself from hotels. In fact, what travelers value most on Airbnb is the local experience it provides (ALTO, 2018). Guests can live in unique accommodations rather than homogeneous hotel rooms, which allows them to interact with the hosts and “live like a local” instead of feeling like a tourist (ALTO, 2017). Today, Airbnb has more than five million listings in over 191 countries with an average of two million people staying on an Airbnb every night and thus has grown into a global community (Airbnb Press Room, n.d.b). With the growth of Airbnb, the company also expanded their home rental to new categories, such as “experiences”, where local hosts offer excursions and other activities to travelers (Airbnb, n.d.a). In fact, Airbnb is growing from a technological brand to a lifestyle brand (BrandDNA, 2014). Despite of a rising number of competitors like Expedia or Priceline, Airbnb still remains leader in the home-sharing industry (McDermid, 2017). The Tesla case “In 2004 – the idea of creating an electric car company was stupidity squared”, stated Elon Musk (2016a) during an interview looking back on Tesla’s journey. Nonetheless, back in 2004, he decided to join the newly founded company: Tesla Inc. Nowadays, Tesla is world-known for its innovative electric cars which disrupted the entire automotive industry. However, when looking back at the history of electric vehicles, it becomes apparent that the concept of electric cars is not new. For instance, the first Porsche, created in 1898, was an electric car (BBC, 2014). At the beginning of 1900, mostly all existing vehicles were electric. In fact, it is only due to Henry Ford’s invention of gas-powered cars, which were immensely cheaper, that the electric car trend diluted and slowly vanished from the market. In order to reduce air pollution, weak attempts to reintroduce the electric car in the US during the 70s and 90s failed completely. Back then “[...] limitations in range and speed – and style – kept electric cars from being adopted on a mass scale [...].” (Thompson, 2017). It was not until

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Tesla that these limitations should finally be tackled. Entering with a master plan in mind, Elon Musk quickly incorporated its vision into Tesla. The plan entailed a three-step approach starting with “[...] a low volume car, which would necessarily be expensive [...]” to “[...] a medium volume car with a lower price [...]” until the final goal of producing “[...] an affordable, high volume car.” (Elon Musk, 2006). At the center of this plan was a technological innovation - lithium batteries, which dramatically widened the range of an electric car to 245 miles per charge. In addition, the first launched car called “The Roadster”, a two seat, sporty cabriole was able to go from 0-60 miles in 3.7 seconds (Business Insider, 2016). Hence, Tesla was finally able to produce electric cars that were attractive for the mass market and thus increased the pressure for competitors (Thompson, 2017). In fact, “Tesla’s announcement and subsequent success spurred many big automakers to accelerate work on their own electric vehicles.” (Matulka, 2014). Today, many traditional carmakers such as Ford, Mercedes-Benz, BMW have integrated electric cars into their portfolio and are planning to expand it even further. The Uber case Uber Technologies Inc. is a technology company that provides transportation on demand on a peer-to-peer platform. The platform can be accessed via its mobile phone app, where consumer called “riders”, can order a private driver to pick them up and bring them to their preferred destination by connecting the rider with a nearby driver. Initially called UberCab, the company was founded by two entrepreneurs in San Francisco in 2009 (Uber Newsroom, 2018a). While the main idea, to “tab a button and get a ride”, was the same as today, Uber first provided a black-car service, which was 1.5 times more expensive than a cab (Uber Engineering Blog, 2015; McAlone, 2016). However, what differentiated Uber from the long-established taxi industry was the usage of modern technology. The company developed a location-based mobile application with an integrated mapping software that not only

enables an immediate connection of passengers and drivers, but also provides an estimated time of arrival and thereby offers passengers a more convenient alternative to traditional cabs (Abrosimova, 2014). For further simplification, the app includes a mobile payment system as well as a rating and feedback function to assure the quality of drivers and a pleasant customer experience (Uber, 2018a). In 2012, Uber introduced UberX, a low-cost alternative to the black car service, which offers private car rides (Brustein, 2012, Flegenheimer, 2014). In fact, this service turned into Uber’s most popular standard service and became a budget friendly alternative to taxis (Uber Newsroom, 2016; Uber, 2018b). With its technology and innovation, Uber managed to disrupt the long-established taxi industry. However, along with Ubers’ success global competitors have arisen such as Lyft, which is Uber’s main competitor in the United States, Didi Chuxing in China or Ola in India. Yet, Uber is currently considered the world’s most valuable privately held technology company with an estimated valuation of $70 billion (Bhardwaj, 2018). Today, the company has a global community consisting of three million drivers, which serve 75 million riders in 65 countries (Uber Newsroom, 2018b). Meanwhile, Uber’s driver on demand service has been widely expanded. For instance, Uber now offers Uber Eats, a food delivery service, and Uber Freight, a service to match carriers with shippers (Uber, 2018c). Furthermore, Uber is working on self-driving cars and freight trucks as well as urban air-transport (Uber, 2018c). The company itself states its initial idea “[...] quickly grew into a global logistics layer, transforming an entire industry in the process.” (Uber Newsroom, 2018a). Case Analysis In the second part of the multi-case study approach the following corporate brand identity matrices are established on the basis of the case descriptions and further additional research which is stated within the reference list as: “NATU-CBIM additional references”.

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Netflix

Airbnb

Tesla

Uber

Exte

rnal

Value Proposition

§ Amazing entertainment experience

§ Unlimited viewing,

§ Commercial-free

§ Affordable subscription § No

commitment

§ Unique homes & experiences

§ Convenience § More

affordable

§ Performance (mile range & speed)

§ Design § Super charging

station/ network

§ Rides on demand, at any time

§ Budget-friendly options

§ Easy way to get around

Relationship § Rich in variety § Excitement § Companion § Personal

§ Global community

§ Belonging, § Trust § Kindness

§ Engagement § Emotional § Passion § Enthusiasm

§ Global community

§ Loyalty § Reliability

Position

§ Leading in streaming media service

§ Providing infinite selection of digital content

§ Leading home rental company

§ Global community that connects humans,

§ Local experiences

§ Leading electric car industry

§ Changing technology

§ Environ-mentally friendly

§ Leading transportation service on demand

Exte

rnal

/ In

tern

al

Expression

§ Netflix logo & tagline

§ Design (The “stack”)

§ Conver -sational, familiar language

(brand voice)

§ Airbnb Logo § Design-led

website and app,

§ Immersive, beautiful photography

§ Blog

§ Tesla Logo § Design § Customer

experience § Online

Communi-cation (Blog)

§ Uber logo § Fresh and

dynamic designed website and app

§ Blog

Core

§ Connecting people with stories for everyone

§ Freedom of choice

§ Passion for movies

§ Belonging anywhere

§ Inclusion § Trust

§ Leading sustainable energy change

§ electric cars accessible and affordable for everyone

§ Facilitate transportation

§ Freedom and Flexibility,

§ Innovation

Personality § Open § Fun § Curious § Passionate

§ Original, § Friendly § Up-to-date

§ Innovative § Inspiring § Embodied by

Elon Musk § Luxury

§ Innovative § Helpful § Considerate § Caring

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Inte

rnal

Mission & Vision

§ “Bringing people joy, and happiness and entertainment”,

§ “Gather the world’s best storytellers and share content”

§ “create a world where people can belong through healthy travel that is local, authentic, diverse, inclusive and sustainable”

§ “to accelerate the world’s transition to sustainable energy.”

§ Electric vehicles;

§ Driving change in car industry

§ ignite

opportunity by setting the world in motion”

§ Provide opportunities for all kinds of people in ways that never existed before

Culture

§ Independence § Responsibility § Transparency § “Dream

Teams”

§ Team-orientation

§ Open and honest communication

§ Diversity § Fun

§ Fast-paced § Energetic § Teamwork § Inclusion

§ Entrepreneurial § Inclusion § Collaboration § Diversity

Competence

§ Streaming technology

§ Deliver digital content

§ Provide personal experience

§ Create original content

§ Usage of technology for home rental

§ Supply-side flexibility

§ Innovative technology (Lithium Battery)

§ Software technology

§ Charging infrastructure

§ Transportation technology

§ Transportation on demand

§ Accurate arrival

§ rating

Table 1: Corporate Brand Identity Matrix NATU (Source: Own illustration)

Analysis Use Cases In the third part, a verbal discussion was hold based on the case descriptions and NATU matrix. Thereby, it became obvious that significant similarities outweigh existing differences. Hence, in the following analysis the focus lies on the major commonalities of the brands. Mission & Vision: Global Positive Change All companies share the desire to create a global positive change. Naturally, this desire is adapted to the respective industry environment. For instance, Netflix aims at providing its members with a range of the world’s best storytellers and thereby brings happiness to its customers (Hastings, 2018). On the other hand, Airbnb is dedicated to creating a world, in

which people belong and connect with each other through traveling (Airbnb Press Room, n.d.c). Uber desires to bring the world into motion and by doing so, it offers new opportunities for its customers (Uber, 2018d). Lastly, the most ambitious mission and vision statement is made by Tesla, as the company aims to actively support the worldwide transition to sustainable energy (Tesla, 2018). To conclude, all four companies express their goal of changing the world positively in the context of their industry. Culture: Team Spirit & Diversity While examining the company cultures, it becomes apparent that NATU share a common view on teamwork and diversity. For instance, Netflix highlights that people are more

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important than processes and uses the term “dream teams” to describe its highly skilled, team-oriented and diversified workforce (Netflix Jobs, n.d.). Similarly, Airbnb underlines the importance of the entire team working together in order to achieve goals effectively (Airbnb, n.d.). At Tesla, the creation of cars is considered to be a team effort, which requires talented individuals to work together (Tesla, 2018). Uber emphasizes that everyone is welcome to their company regardless of background or culture. By further extend, they also strive to build something great together as a team and therefore consider these two factors important parts of their company culture (Uber, 2018e). Given these statements, it becomes obvious that team-spirit and diversity are considered important elements of culture for all companies. Competences: Innovative Technology Innovative technology enabled NATU to disrupt entire industries. For instance, Netflix created a completely new business model with its streaming service and therefore was able to change the entertainment industry (Netflix Investor, 2018b). Airbnb was the first company who took advantage of home rental technology. By doing so, they provided the hosts with flexibility on duration and price but also offered a new and unique way to experience local culture while travelling (Roach, 2018). Tesla was the first to commercialize electric cars by using innovative technology that expanded the range as well as the performance tremendously (Thompson, 2017). In similar ways, Uber invented a new transportation technology, which enabled transportation on demand including accurate arrival and price times as well as the opportunity to rate the driver (Abrosimova, 2014). To conclude, all four companies were able to create innovative technologies, which can be considered as the core asset in order to successfully disrupt their respective industries. Expression: Online Communication & Recognizable Design

When evaluating how NATU express themselves, it becomes apparent that all brands focus on online communication as their main channel. In addition, all companies have a recognizable design in common. Given the nature of their business, it is not surprising that NATU communicate mostly via their website. In fact, Airbnb, Uber and Tesla connect with consumers through their own blogs. Moreover, all brands set a focus on a recognizable design. For instance, Netflix expresses itself with a unique global branding called “The Stack”, which “[...] implies both the infinite, ever-changing catalogue and the custom-curated selections that make up the core of the Netflix service.” (Gretel, n.d.). According to Airbnb, design has an influence on every part of its business, which is illustrated by an own website dedicated to this field (Airbnb Design, n.d.). Also, interesting to mention, is Airbnb’s inclusive design in line with its focus on a global community (Sui, n.d.). Similarly, Uber runs a separate blog in which the company presents its “[...] holistic brand system that’s instantly recognizable, works around the world, and is efficient to execute.” (Uber Design, 2018). On the contrary, Tesla focuses on a unique car design that unifies beauty and efficiency. Chief designer von Holzhausen established a comprehensive visual impression with a hint of industrial design, which is expressed in every Tesla car (DeBord, 2017). Core: Innovation & Commitment for a Better World At the heart of all companies lie two core values: Innovation and commitment for a better world. NATU are associated with innovative technologies that managed to disrupt entire industries. Even after their technological breakthrough, innovation remains their driving force in order to change the world and reach their mission and vision. Although Uber is already very successful with its innovative business model, the company keeps working on new ways to move people forward. For instance, Uber Health aims to “[h]elp patients and caregivers to get reliable rides.” (Uber

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Health, 2018). Further, the company plans to change the “[...] future of autonomous transportation technology” by building self-driving vehicles and developing urban air transportation (Uber, 2018b). Moreover, Airbnb keeps evolving its peer-to-peer platform in order to further facilitate hosts’ and guests’ home booking process. Besides developing their existing offering, Airbnb expanded its product range to “Experiences”, which are out-of-home activities for travelers designed by local hosts (Airbnb, n.d.c). With its innovative “OpenHomes” program, Airbnb aims to “[o]ffer free, temporary housing to people who’ve left their home due to conflict, disasters, or medical care.” (Airbnb, n.d.d). Hence, Airbnb stays committed to create a better world. Furthermore, Netflix has changed the way customer watch movies and series by continually improving its streaming service such as its movie recommendation algorithm (Aurisset et al, 2017). In addition, the company recently introduced a feature that allows members to download shows in a smart and easy way by automatically deleting episodes that have been watched offline and downloading the next episode once connected to Wi-fi (Netflix Media Center, 2018). Finally, Tesla remains an innovation-driven company as shown in its business plan. Future innovations are for instance, the development of a new battery technology, which will enable a range of up to 1,000 kilometers per charge by 2020 (Thompson, 2015). Personality: Dare to be Different, Brave & Caring The corporate character of NATU can be described as caring, brave and daring to be different. With their new innovations, all companies differentiated themselves from the competition within their industry. For example, by offering monthly subscriptions and thus unlimited movie rental, Netflix differentiated itself from its main competitor Blockbuster and changed the way people watched TV (BBC, 2018; Satell, 2014). By daring to be different, NATU has challenged their respective industry with innovative technologies. In fact, the companies

even challenged and disrupted themselves by taking risks. For example, Tesla was brave enough to invest all its financial resources even though electric cars were not seen as commercial business (Badkar, 2013). In similar ways, Uber published a list of “big bold bets” in its cultural norms (Khosrowshahi, 2018). Indeed, the company keeps making bold bets, for example, with Uber Air, a ride sharing product enabling customers to call urban flights on-demand. According to the company, this service will launch in 2023 (Uber, 2018f). The caring trait of NATU is expressed by their strong commitment to change the world for the better as embedded in their core and mission. For example, Airbnb, wants to create a world, where people can belong anywhere. Furthermore, it is of interested to mention, that in an extreme case, an organization’s personality can be embodied by a real-life person. This is shown by Tesla, who is identified with its CEO, Elon Musk. Even though such embodiment is not the case for all four companies, it allows a company to differentiate itself from the competition. Value Proposition: Affordable for the Average Consumer Netflix, Airbnb and Uber offer a service that is affordable for the average consumer. In particular, all companies focus on convenience and strive towards making consumer’s life easier. In this context, Netflix abandoned late fees and introduced a monthly subscription system, allowing members to watch movies for as long as they wished. Today, Netflix offers three different plans starting with a basic option at 7.99€ per month (Netflix, 2018). Similarly, Airbnb enables low-budget traveling by offering less expensive accommodation compared to most hotels (McCarthy, 2018). In the same way, Uber can be considered as a budget friendly alternative to taxis. While cabs charge their customer per minute, Uber’s prices are calculated upfront before the actual request of a car (Uber, 2018g). In contrast, Tesla cars might not be perceived affordable for everyone when considering its high price positioning. However, the

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company’s long-term vision aims to create sustainable cars for the mass (Musk, 2016b). As a result, one can conclude that all brands strive to be affordable for the majority of consumers in order to make life easier and drive positive change. Relationship: Emotional & Loyal All brands share a strong emotional connection with its customers which reinforces the sense of belonging and attachment, ultimately creating loyalty. Due to its broad range of series, “Netflix has become the opium of the masses”, thus turning the streaming of digital content into an obsession (Mahdawi, 2018). Chasing one episode after another, Netflix makes members forget about everything while sharing the thrill with its main characters. Consequently, Netflix takes its members on an emotional roller coaster and capitalizes on their urge of satisfying curiosity. Less addicting but still engaging, Airbnb and Uber have created a global community by reinforcing peer-to-peer relationships between locals and foreigners. In particular, trust and kindness are crucial for a positive customer experience. In this respect, it is of interest to mention, that Airbnb and Uber are taking advantage of sharing economies and “[...]focus on the sharing of underutilized assets,

monetized or not, in ways that improve efficiency, sustainability and community.“ (Rinne, 2017). Therefore, Airbnb and Uber extend their customer-relationship by relying on intermediaries, similar to a B2B partnership. In similar ways, Tesla has established a strong emotional bond based on trust. For instance, half a million customers were willing to deposit 1,000 USD for a new Tesla model without having seen or testing it (Ong, 2018). In fact, 91% of Tesla customer would buy a Tesla again, which proves customer’s loyalty (DeBord, 2016). Positioning: Leadership The NATU brands are striving to become the leader in their respective industry in order to drive positive change and development. Netflix positions itself as the leading streaming media service while Airbnb aims at being the primary home rental company (Turek, 2018; Gretel, n.d.; Gallagher, 2017). Likewise, Uber wants to be perceived as the leader in providing transportation service on demand (Kosoff, 2015) In similar ways, Tesla wants to conquer the world by reducing the environmental footprint as the leading provider of electric cars (Elkind, 2016).

“New kids on the block”

Illustration 2: “New kids on the block” - Corporate Brand Identity Matrix

(Source: Own illustration)

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From the significant similarities between the four companies, a universal pattern including all nine elements was identified, whereupon a new corporate brand identity matrix was established, as shown in Illustration 2. Therefore, these common characteristics can be considered as important elements for disruptive corporate brand identities. As such, the new corporate brand identity serves as a model matrix for “New kids on the block”.

In addition to the model matrix, Table 2 lists indicative questions for each element, which were formulated in line with Urde (2013). These leading questions serve as assistance in order to understand and build a “New kids on the block” brand identity.

Illustration 2: Indicative Questions

(Source: Own illustration) Conclusion The aim of this paper was to examine the corporate brand identity of disruptive innovators and to answer the question whether a universal pattern of corporate brand identities for “New kids on the block” could be identified and if so, what it looked like. Theoretical implications Research showed that a pattern for the corporate brand identity of the “New kids on the block” does exist. Due to the fact, that the corporate brand identity matrix NATU (Table 1) revealed more significant similarities than differences, a universal pattern for “New kids

on the block” could be derived based on the major common characteristics found in all nine elements (Illustration 2). The new model matrix illustrates an overview of important components of disruptive brand identities. In addition, the indicative question shown in Table 2, initially designed by Urde (2013), were adapted and correspond to the new model matrix. Managerial implications The developed model matrix allows managers to understand the brand identities of disruptive innovators. Further assistance is provided by indicative questions (Table 2). On the one hand, (brand) managers, who are planning to

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establish a “New kid on the block” can use the model matrix as a guideline for building their brand identity. On the other hand, brand managers defending established brands can use the model matrix in order to gain a better understanding of the industry development and future competition. Limitations and future research Limitations of this paper include the following points. Firstly, the corporate brand identity matrices are solely based on secondary research, which weakens the validity of the established matrices. Secondly, the matrices might have been influenced by personal opinions of the authors. Thirdly, the information used to establish the matrices refer to NATU’s present situation and thus distort the initial brand identity at the point of market entry. For future investigation it is of interest to examine whether this research approach applied to the other two groups of disruptive companies, namely Google, Apple, Facebook and Amazon (GAFA) and Baidu, Alibaba, Tencent and Xiami (BATX) would lead to the same conclusions. Furthermore, it would be interesting to explore the brand identity of “New kids on the block” in comparison to other market driving companies. References Abrosimova, K. (2014). Building an App Like

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