Market Disruption

Market disruption refers to a significant change in an industry that alters the competitive landscape and alters existing market dynamics. This can occur due to various factors, such as the introduction of innovative products or services, advancements in technology, shifts in consumer preferences, or the emergence of new business models. Disruptive innovations often create new markets and value propositions, leading to challenges for established companies that may be unable to adapt quickly. A classic example is how digital streaming disrupted the traditional video rental market. Market disruption can result in greater competition, changes in pricing models, and ultimately, a redefinition of customer expectations and experiences within the affected market.