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Business
Disruptive Innovation
A new product or service that starts simple and cheap at the bottom of the market and eventually moves up to replace established competitors.
Clayton Christensen's theory explains why big successful companies often miss disruptive innovations — they focus on their best customers while the disruption starts with low-end or new customers.
It's the cheap, ugly little car that starts in the low end and eventually eats the luxury car market.
Real world: Digital cameras started as low-quality toys but eventually killed film photography giants like Kodak. Netflix started with DVDs by mail and later disrupted Blockbuster and then traditional TV.
💡 Disruptive innovation is how small players eventually topple industry giants.