Strategy · business glossary
What is Disruption?
By Shivam Bhandari · Reviewed 31 October 2026 · How we write
definition
A new entrant or technology that initially serves an overlooked segment more simply or cheaply, then moves upmarket to challenge established leaders.
Disruption explained
Disruption, in Clayton Christensen's theory, is when a simpler or cheaper product starts at the bottom of a market and moves up until it displaces established leaders.
example
Digital cameras disrupted film; mobile payments disrupted cash for small transactions.
why it matters
Incumbents often ignore disruptors because they serve less profitable customers at first.
common mistake
Calling every new product ‘disruptive’ — most are improvements, not disruption.
Frequently asked questions
What is Disruption?
A new entrant or technology that initially serves an overlooked segment more simply or cheaply, then moves upmarket to challenge established leaders. Disruption, in Clayton Christensen's theory, is when a simpler or cheaper product starts at the bottom of a market and moves up until it displaces established leaders.
Why does Disruption matter?
Incumbents often ignore disruptors because they serve less profitable customers at first.
What is a common mistake with Disruption?
Calling every new product ‘disruptive’ — most are improvements, not disruption.
Related terms
Pivot
A significant, deliberate change in business model or direction, usually made after learning the original approach isn't working.
First-mover advantage
The temporary edge gained by being the first credible entrant into a new market or category.
Competitive advantage
Any factor that allows a business to outperform its competitors on a sustained basis.