The Theory of Disruptive Innovation coined by Clayton Christensen first entered prominence about twenty- five years back. The profile of disrupters though has evolved dramatically. The original ones used to be those who would provide a cost advantage to the buyer, by coming out with cheap products. This ensured that the legacy companies remained strong in providing niche products. Now, it is being further challenged, as the startups are coming out with products, equal in quality to those from the stables of the incumbents. The theory has thus been challenged, so needs modification. Companies’ corporate strategy too needs to evolve accordingly. When newcomers are ignored, eventually the upstarts start dominating the older players, who are forced to cede space. The margins are lower for the newbies at the start, but keep improving with time.

Source:https://sloanreview.mit.edu/article/the-new-disrupters/

Uploaded Date:27 February 2020