|
| |
|
Definition of
Disruptive
Innovation
Low-End Disruption
New-Market Disruption
|
|
|
| |
Clayton Christensen coined the
term “Disruptive Innovation” as
follows:
“Disruptive Innovation describes
a process by which a product or
service initially takes root in
simple applications at the
bottom of a market – typically
by being less expensive and more
accessible – and then
relentlessly moves upmarket,
eventually displacing
established competitors.”
|
|
|
 |
Disruptive innovation is a process where a product or
service takes root initially in simple applications at
the bottom of a market and then relentlessly moves up
the market, and eventually displaces established
competitors. |
JD Meier |
|
|
|
Low-End Disruption
Low-end disruption is when businesses come in at
the bottom of the market with a “good enough”
product at a cheaper cost. This is
disruptive innovation where a smaller
company with fewer resources moves upmarket and,
ultimately, captures the incumbents’
customers,
who have adopted it into the mainstream.
|
|
|
|
The big difference between the low-end disruption and
new-market disruption is that low-end disruption focuses
on over-served customers, while new-market disruption
focuses on underserved customers. |
JD Meier |
| |
According to Christensen:
“If you come to the bottom of the market, you
create a situation where the giant company is
motivated to flee, rather than fight you. They
won’t fight you, because there’s no profit in
it, and it’s very hard for companies to pursue
opportunities where there’s no profitability...
What happens when the incumbents are so focused
on pleasing their most profitable customers that
they neglect or misjudge the needs of their
other segments.”
|
|
Radical
Innovation
Quotes
Radical vs. Incremental Innovation
RPM
7 Challenges
INNOBALL |
|
| |
"Low-end disruption doesn’t
create new markets, you just
gain market share against the
old. New-market disruption
competes against the original
players by going after new
customers that these companies
aren’t interested in, selling
them a simple product.”
|
|
|
|
|
After all, anything that enters a market and interrupts
or changes the normal progress or activity of something
could be seen as “disruptive”. |
JD Meier |
|
|
