Also known as: disruptive innovation, market disruption

Disruption

TechnicalStrategies

Definition

Disruption: Disruption occurs when simpler, cheaper, or more convenient products initially serve overlooked segments, then improve to capture mainstream markets from incumbents. True disruption (per Clayton Christensen) starts at the low end or in new markets, not by directly attacking incumbents' best customers.

Example Usage

“We disrupted enterprise software by serving SMBs with simpler, cheaper tools. Now we're moving upmarket as our product matures.”

Common Misconceptions

Any innovation is disruption. Disruption specifically involves business model and market dynamics, not just technology.

Disruption happens overnight. It typically takes years; incumbents often dismiss disruptors until too late.

Disruptors always win. Many disruptors fail; incumbents sometimes successfully adapt or acquire.

Related Terms

Blue Ocean Strategy

Blue ocean strategy creates new market space ('blue oceans') rather than competing in existing crowded markets ('red oceans'). It involves value innov...

TechnicalStrategiesFrameworks

First-Mover Advantage

First-mover advantage is the competitive benefit gained by being first to enter a market. Advantages include brand recognition, customer lock-in, and...

ConceptualStrategies

Commoditization

Commoditization is the process where products become interchangeable, competition shifts to price, and margins erode. It threatens companies relying o...

TechnicalStrategiesFinance

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Disruption

Definition

Example Usage

Common Misconceptions

Related Terms

Blue Ocean Strategy

First-Mover Advantage

Commoditization

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