Disruptive innovation

Disruptive innovation is a theory introduced by Clayton Christensen in the mid-1990s. It refers to a process by which a smaller company with fewer resources is able to successfully challenge established businesses. Disruptive innovations typically start by targeting a lower end of the market — serving customers who are overlooked by mainstream providers or offering simpler, cheaper products that meet basic needs. Over time, these innovations improve and begin to attract more customers, eventually displacing established competitors.