the disruptor theory

Disruptor theory, also known as disruptive innovation theory, is a concept introduced by Harvard Business School professor Clayton M. Christensen in his book "The Innovator's Dilemma" published in 1997. Disruptor theory describes how new technologies, products, or services can disrupt existing markets and industries, often leading to the displacement of established companies and business models.

According to disruptor theory, disruptive innovations typically start by targeting niche markets or underserved customer segments that are often ignored by established players. These innovations may initially be seen as inferior or lacking in performance compared to existing solutions, but they offer other advantages such as lower cost, simplicity, convenience, or accessibility.

Over time, disruptors improve their products or services, gradually closing the performance gap with established competitors. As a result, they begin to attract customers from the mainstream market who are drawn to the disruptor's unique value proposition. This process eventually leads to the disruptor overtaking established companies and fundamentally reshaping the industry.

Disruptive innovations can arise from various sources, including technological advancements, changes in business models, or shifts in customer preferences. They often introduce new ways of delivering value, challenging the status quo and forcing established companies to adapt or risk becoming obsolete.

One key aspect of disruptor theory is the concept of sustaining innovation versus disruptive innovation. Sustaining innovation refers to incremental improvements made by established companies to their existing products or services in order to meet the evolving needs of their customers. Disruptive innovations, on the other hand, bring forth a fundamentally different value proposition and typically require a different set of capabilities and business models.

Disruptor theory has been used to explain a wide range of industry disruptions, such as the impact of digital photography on traditional film photography, the rise of streaming services in the entertainment industry, and the transformation of the transportation industry through ride-sharing platforms. It provides a framework for understanding how industries evolve and how companies can strategically respond to disruptive forces to maintain their competitive advantage.