Disruption refers to a process whereby a smaller company with fewer resources can successfully challenge established businesses. In the world of technology, disruptive innovation is a mode of innovation-driven growth (Christensen, Raynor, & McDonald, 2015).
The red lines represent how products and service improve over time.
The blue lines represent customer willingness to pay for performance.
Over time as the established companies service the high-end of the market, there exist a gap in the low-end of the market. New entrants disrupt the market by entering this low-end segment and gradually improve their offerings to challenge the established players in the high-end segment.
TECHNOLOGY DISRUPTION& UBER