The Disruption Theory

Disruption Theory explains how new innovations or business models can fundamentally change or displace existing markets. When a smaller or newer company introduces a product that initially targets overlooked or less demanding customers—often with lower prices or different features—it can gradually improve and capture mainstream markets. This process disrupts established companies, who may struggle to adapt, leading to shifts in industry dynamics. Essentially, it highlights how innovation can challenge and transform industries by offering alternative solutions that better meet evolving customer needs, reshaping the competitive landscape over time.