Disruption

What is Disruption?

Disruption refers to the process by which smaller companies challenge and often displace larger, established companies. This usually occurs when a new entrant introduces a more efficient, cost-effective, or innovative solution that changes the dynamics of the market. Disruptive innovation often targets overlooked segments of the market before moving into the mainstream.

Characteristics of Disruptive Innovation

• Cost Efficiency: Often provides a more affordable solution compared to established alternatives.
• Technological Advancement: Leverages new technologies to solve existing problems more effectively.
• Market Redefinition: Creates new markets or reshapes existing ones by attracting customers who previously had limited options.

Related Terms and Concepts

Innovator’s dilemma, market disruption, incumbent, startup ecosystems