Clayton Christensen's Theory of Disruption

Clayton Christensen's Theory of Disruption describes how smaller, innovative companies can challenge established market leaders by initially offering simpler, more affordable products or services that meet the needs of overlooked or underserved customers. Over time, these disruptors improve and move upmarket, eventually displacing the existing dominant players. This process highlights how innovation from the fringes can reshape industries, often catching established companies off guard if they focus only on their current high-end customers. In essence, disruption is about new entrants gradually transforming markets through innovative, accessible solutions that initially seem less attractive but ultimately change the competitive landscape.