Business Foundationsadvanced
Disruptive Innovation
Definition
A process by which a product or service initially appeals to a niche or underserved market with a simpler, cheaper offering, then improves over time until it displaces established market leaders.
Why it matters
Disruption rarely looks dangerous at first. Incumbents dismiss early disruptors as too simple or low-margin. Founders can exploit this by entering overlooked segments and improving rapidly.
Example
Online courses were once dismissed as lower quality than university degrees. They disrupted professional training from below, eventually reaching a quality level that made them the default choice for many skill-based learners.
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