• A process by which a product or service takes root initially in simple applications at the bottom of a market and then relentlessly moves up market, eventually displacing established competitors
• An innovation that is disruptive allows a whole new population of consumers at the bottom of market access to a product or service that was historically only accessible to consumers with a lot of money or a lot of skill
• Low-end disruption refers to businesses that come in at the bottom of the market, generally the lower profit markets for the incumbent
• New-market disruption refers to businesses that compete against non-consumption in lower margin sectors of an industry
• Some examples of disruptive innovation include:
| Disruptor | Disruptee |
|---|---|
| Personal computers | Mainframe and mini computers |
| Mini mills | Integrated steel mills |
| Cellular phones | Fixed line telephony |
| Discount retailers | Full-service department stores |
| Retail medical clinics | Traditional doctor’s offices |
Source: Clayton Christensen, HBS Online