Christensen Theory of Disruption

Christensen’s Theory of Disruption explains how new entrants to a market can gradually replace established companies. Disruptive innovations often start by serving overlooked or less-demanding customers with simpler, more affordable products. Over time, these innovations improve and attract more mainstream customers, eventually overtaking the existing leaders. The established companies usually focus on their most profitable customers and ignore these weaker entrants, allowing disruptors to gain a foothold. This process explains why many once-dominant companies fall behind newer competitors that initially seem less impressive but become more powerful over time.