Understanding Disruptive Innovation

Innovation is a crucial factor for the survival and success of any business. Companies that fail to innovate are inevitably overtaken by competitors that do. But what happens when a new product or technology disrupts the market? How can companies prepare for this? In this article, the authors explore the concept of disruptive innovation and its three critical phases: emergence, niche market, and mainstream market. They also examine the strategic actions that entrants and incumbents can take to shape the disruptive path and manage the process. The authors conclude by highlighting the need for further research into the adaptability of strategic actions and the role of environmental conditions in the disruption process.