Disruptive Innovation

The potential for disruptive innovation typically emerges when you lack the quality or value to lead the field and gain a superior position in the overall market – but you can adequately serve a small niche. If the niche you occupy continues to grow fast enough and your technology progressively improves, you’ll overtake the leaders – disrupting their established market position. Disruption can come about by accident or through an intentional effort.

Example:

Newspapers used to reap major revenues from selling classified ads. Then Craigslist came along and offered consumers a free version of classifieds. In doing so Craigslist disrupted a long-established mainstream market. Craig initially provided his list to friends as a convenience and community service, so his disruption was not really  intentional. But after his idea worked he realized its value and began to engage in purposeful, deliberate disruptive innovation.