Disruptive Innovation Theory (Clayton Christensen)

Disruptive Innovation Theory, coined by Clayton Christensen, explains how smaller companies with fewer resources can successfully challenge established businesses. These newcomers initially target overlooked market segments with simpler, cheaper products. Over time, they improve their offerings, eventually attracting mainstream customers and displacing established companies. A classic example is how digital photography disrupted traditional film photography. Instead of competing directly with big players, disruptors offer innovative solutions that grow to dominate the market, reshaping industries and consumer behavior. This theory highlights the importance of adaptability and foresight in business strategy.