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Disruptive innovation allows new entrants to disrupt incumbents from "summary" of The Innovator's Dilemma by Clayton M. Christensen
Disruptive innovation is a powerful force that has the potential to upend established market leaders. This type of innovation often originates from new entrants in the market who introduce products or services that are initially considered inferior by incumbent firms. These new entrants are able to disrupt incumbents by targeting underserved or overlooked customer segments, rather than directly competing with established players in the market. One of the key features of disruptive innovation is that it allows new entrants to gain a foothold in the market by offering a simpler, more affordable alternative to existing products or services. This simplicity and affordability appeal to customers who are looking for a basic solution to their needs, rather than a high-end, feature-rich offering. Over time, these disruptive products or services improve in quality and functionality, gradually capturing more market share and eroding the position of established firms. As disruptive innovation progresses, new entrants are able to expand their customer base and move upmarket, eventually competing directly with incumbent firms. This represents a significant threat to established companies, as they are often unable to respond effectively to the challenge posed by disruptive entrants. The very characteristics that initially made disruptive products unattractive to mainstream customers - such as lower quality or limited features - become less relevant as these products improve and evolve. In this way, disruptive innovation allows new entrants to disrupt incumbents by fundamentally changing the competitive dynamics of the market. Established firms are forced to adapt or face obsolescence, as disruptive products gain traction and capture market share. This concept of disruption highlights the importance of continuously monitoring and responding to changes in the competitive landscape, in order to stay ahead of the curve and remain relevant in the face of disruptive innovation.
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