The New Kids on the Block

Exploring the brand identity of disruptive innovators

By:

Jana Tigges, Bettina van der Stelt & Jessica Volk















 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 Indeed, literature provides evidence that a

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?
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),
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).
 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.
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
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
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”.
 Netflix Airbnb Tesla Uber

§ Amazing
entertainment
experience § Performance § Rides on
§ Unique homes
§ Unlimited (mile range & demand, at any
& experiences
viewing, speed) time
Value § Convenience
§ Commercial- § Design § Budget-friendly
Proposition § More
free § Super charging options
affordable
§ Affordable station/ § Easy way to get
subscription network around
§ No
commitment
External

§ Global
§ Rich in variety § Engagement § Global
community community
§ Excitement § Emotional
Relationship § Companion
§ Belonging,
§ Passion
§ Trust § Loyalty
§ Personal § Enthusiasm § Reliability
§ Kindness

§ Leading home § Leading

§ Leading in
rental company electric car
streaming § Leading
§ Global industry
media service transportation
community that § Changing
Position § Providing service on
connects technology
infinite demand
humans, § Environ-
selection of
§ Local mentally
digital content
experiences friendly

§ Netflix logo &

§ Airbnb Logo
tagline § Tesla Logo § Uber logo
§ Design-led
§ Design (The § Design § Fresh and
website and
“stack”) § Customer dynamic
app,
Expression § Conver
§ Immersive,
experience designed
-sational, § Online website and
beautiful
familiar Communi- app
photography
language cation (Blog) § Blog
§ Blog
(brand voice)
External / Internal

§ Connecting § Facilitate
§ Leading
people with transportation
sustainable
stories for § Belonging § Freedom and
energy change
everyone anywhere Flexibility,
Core § Freedom of § Inclusion
§ electric cars
accessible and § Innovation
choice § Trust
affordable for
§ Passion for
everyone
movies

§ Innovative
§ Open § Innovative
§ Original, § Inspiring
§ Fun § Helpful
Personality § Friendly § Embodied by
§ Curious § Considerate
§ Up-to-date Elon Musk
§ Passionate § Caring
§ Luxury
 § ignite
§ “Bringing § “create a world § “to accelerate opportunity by
people joy, and where people the world’s setting the
happiness and can belong transition to world in
entertainment”, through healthy sustainable motion”
Mission & § Provide
§ “Gather the travel that is energy.”
Vision local, authentic, § Electric opportunities
world’s best
storytellers and diverse, vehicles; for all kinds of
share content” inclusive and § Driving change people in ways
sustainable” in car industry that never
existed before

§ Team-
Internal

§ Independence orientation
§ Fast-paced § Entrepreneurial
§ Responsibility § Open and
§ Energetic § Inclusion
Culture § Transparency honest
§ Teamwork § Collaboration
§ “Dream communication
§ Inclusion § Diversity
Teams” § Diversity
§ Fun

§ Streaming
§ Innovative
technology § Transportation
technology
§ Deliver digital § Usage of technology
(Lithium
content technology for § Transportation
Battery)
Competence § Provide home rental on demand
§ Software
personal § Supply-side § Accurate
technology
experience flexibility arrival
§ Charging
§ Create original § rating
infrastructure
content
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
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 & instance, Uber Health aims to “[h]elp patients
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
and caregivers to get reliable rides.” (Uber
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
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,
“New kids on the block”
Illustration 2: “New kids on the block” - Corporate Brand Identity Matrix
(Source: Own illustration)
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).
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”.
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
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.
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
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.
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