Theory of Disruptive Innovation (Clayton Christensen)

The Theory of Disruptive Innovation, developed by Clayton Christensen, explains how smaller companies can challenge established ones by initially offering simpler, more affordable products or services. These innovations often start in niche markets or underserved segments, gradually improving and capturing mainstream customers. Over time, disruptive innovations improve in quality and performance, eventually displacing existing market leaders. This process shows how new entrants can reshape industries by changing the way value is delivered, often leading to significant shifts in market dynamics and dominance.