The Disruptive Innovation Model explains how smaller companies with limited resources can successfully challenge established industry leaders.
Developed by Clayton Christensen, the model explains how certain innovations disrupt existing market dynamics to create a completely new market, often leading to the decline or even eradication of industry leaders. A prime example is how Netflix's online streaming model disrupted Blockbuster's physical rental service, ultimately leading to its downfall. Netflix leveraged technology to provide a more convenient, inexpensive solution, which eventually attracted Blockbuster's customer base and led to their market dominance.
Companies tend to innovate faster than their customers' needs evolve. Most organizations end up producing products or services that are actually too sophisticated, too expensive, and too complicated for many customers in their market - Clayton Christensen
