Businesscalendar_todayLast updated: Apr 2026
What is Disruption?
/dɪsˈrʌpʃən/
Disruption in business describes how a smaller company with fewer resources can challenge and eventually overturn established industry leaders by starting at the low end of the market and then moving upmarket.
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Everyday Example
Netflix started by mailing DVDs to customers Blockbuster considered unprofitable — then moved into streaming, ultimately destroying the business of its larger rival.
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“Airbnb, Uber, and Spotify all disrupted their industries not by being better than incumbents at first, but by serving underserved customers with "good enough" solutions at lower prices.”
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Did you know?
The theory of disruptive innovation was developed by Harvard Business School professor Clayton Christensen in his 1997 book "The Innovator's Dilemma."
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Key Insight
Incumbents almost always see disruption coming and almost always do nothing. The threat looks too small, the margins too low, and the new entrant too crude — until it is too late.
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