What does "disruptive innovation" create?

Disruptive innovation fundamentally transforms markets by creating new markets and value networks. This concept, introduced by Clayton Christensen, illustrates how innovations can start in low-end or entirely new market segments and eventually displace established market leaders or products.

When disruptive innovations emerge, they often provide simpler, more affordable, or more convenient alternatives that appeal to underserved customer segments. Over time, these innovations can evolve and improve, capturing a larger share of the market and leading to substantial changes in consumer behavior and industry dynamics.

This process not only leads to the decline of traditional products but fundamentally reshapes the competitive landscape by providing new forms of value, which can create opportunities and challenges for existing businesses. Disruptive innovation is therefore characterized more by its capacity to create new markets rather than merely shifting preferences in a short-term manner or only enhancing existing products.