Disrupted

The Industries at Risk and the Companies Positioned to Benefit

CORAL SPRINGS, Florida, June 4, 2018 /PRNewswire/ --

Financialnewsmedia.com News Commentary 

"Neither RedBox nor Netflix are even on the radar screen in terms of competition," Blockbuster CEO Jim Keyes told the Motley Fool in 2008. His video-rental chain filed for bankruptcy in 2010. Today Netflix is worth $61.93 billion.

Sometimes the next big thing isn't easy to spot. Sometimes disruption is staring you right in the face and you can't help but look the other way. That's doubly true when you're the head of a legacy business desperate to stay relevant.

Business disruption has become the new normal that companies face on a regular basis whereas a decade ago it was the rare exception. The major cause of disruption is the rapid advancement of technology and globalization, which allows new business models to be introduced at an ever-increasing rate and with rapidly declining costs.

Companies mentioned in today's commentary positioned to benefit or at risk of disruption include: NVIDIA Corporation (NASDAQ: NVDA), Generation Next Franchise Brands (OTC:VEND), General Motors Company (NYSE: GM), SolarEdge Technologies, Inc. (NASDAQ: SEDG) and the Charles Schwab Corporation (NYSE: SCHW).

Humanless Retail vs Brick and Mortar

Many brick and mortar retailers are struggling to meet the demands of Millennials, consumers aged 21 - 37. Representing almost 25% of the entire population, this largest generation in history is responsible for an estimated $200 billion in annual purchases. This tech-savvy demographic places a premium on time, convenience and favors machine automation over human interaction. In the absence of a cashier and the typical bricks-and-mortar retail environment, humanless retail attracts more customers more frequently who spend more. These machines mean that customers can interact with merchants more quickly, without having to waste time standing in lines waiting on slow-moving employees.

Coupled with rising rents and wages in many places, it is becoming more expensive to maintain small stores and as a result automation will have a major impact on the nature of work in the coming decade. While there are varying stats on how many jobs and work activities could be automated, the reality is that automation - supported by technologies like artificial intelligence (AI), robotics and machine learning - will eventually transform virtually every industry and organization.