What is Clayton Christensen's theory of disruptive innovation?
Disruptive innovation describes a process where a firm introduces a new product or service that is initially simpler and cheaper, targeting overlooked market segments or creating new ones. These innovations don't appeal to the mainstream market's current needs. However, over time, they improve and eventually gain traction in the core market, displacing established incumbents. It's not about a better product for the same customer, but a different offering for a different customer that eventually evolves.
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