Marketing Article: 3 Disruptive innovation

Disruptive innovation is an innovation that creates a new market and ultimately invades the established markets through new technology improvements. Clayton Christensen first coined the phrase "disruptive technologies" in his article Disruptive Technologies: Catching the Wave. It allows access to a product or service to an entirely new set of consumers. This kind of Strategy forces the companies to have higher flexible products to cater the needs of the changing environment.

Types of Disruptive Innovations:

1. Creating a new market by targeting on non-consumers called new market disruption.

2. Contending in the low end of an established market called low end disruption. This strategy targets the least  profitable and over served customers.

Examples:

1. Disruptions often occur in storage devices industry. The Floppy Disk was replaced by CDs, CDs was replaced by DVDs and so on.

2. Being a leading player in the optical media storage market in India, Moser Baer entered into entertainment business that focuses upon distributing movie CDs at lower prices.