What is disruptive innovation in the business market? Find out!

Business / Date: 03-28-2025

Have you ever wondered why companies like Netflix, Uber, Foodpanda— among many others — are leaders in their fields? One of the answers to this question is related to the level of disruptive innovation they offer.

Based on these examples, just imagine how much more expensive and laborious it was in the past to rent a movie, call a taxi or order a pizza. Therefore, disruptive businesses can change the way a segment works and attract thousands of users.

Did the subject catch your attention and do you want to better understand what disruptive innovation is in the business market? Continue reading this post!

What is disruptive innovation?

The term disruptive innovation is used to describe the creation of a product, service or business model that transforms a segment or establishes new markets. The concept was popularized by Clayton Christensen, a professor at Harvard Business School, in the 1990s.

In his work “The Innovator's Dilemma”, published in 1997, Clayton addresses incremental and disruptive technological changes. The former are related to the search for improvements in existing products and services.

Disruptive changes occur when a new technology or approach solves an old problem in a significantly better, more accessible, or more practical way than existing solutions. In other words, the change challenges the previous status quo and can make traditional products and services obsolete.

Some examples include:

E-mail: the emergence of electronic mail has practically retired the sending of physical direct mail (marketing messages), letters and telegrams;
Smartphones : the arrival of these devices has changed the way society communicates remotely, replacing landlines and payphones (public telephones);
Raast : making payments and transfers has become much easier than with DOC (credit order document), which was discontinued, and TED (electronic transfer available).

It is worth mentioning that, to be disruptive, a product or service does not need to completely eliminate a traditional solution. However, it must offer a radically new and generally more accessible proposal, as seen above — attracting a larger audience.

How is this concept applied in the business market?

Once one understands what disruptive innovation is, one should then examine how it fits the corporate environment. Companies that embrace new technologies, innovative business structures, and tactics that question conventional wisdom often find this idea shared.

In this regard, gaps left by big companies are taken advantage of since they cannot always react fast to developments in the market. Many times, disruptive businesses start small and with little resources and could find it challenging to acquire market share.

However, with a creative and bold approach, they introduce products and services that simplify and improve consumers' lives. Advances tend to happen on several fronts, such as accessibility, performance , quality and more.

In this way, disruptive businesses democratize access to the innovative solution they create, in addition to being able to bring more efficiency, saving time and resources. These factors contribute to their rapid growth in the market and to these companies assuming leadership positions.

Which companies grew by adopting disruptive innovation?

So far, you've seen the concepts behind disruptive innovation, but it's also worth checking out which companies have grown from adopting this approach.

Follow some examples!

Netflix

Netflix has revolutionized access to audiovisual content. On its platform, users can watch movies, series, cartoons and documentaries on demand. This means you don't need to follow a fixed schedule on broadcast or cable TV, or rent or buy DVDs.

Foodpanda

Foodpanda has transformed the delivery sector by connecting consumers, delivery people and restaurants on an integrated platform. On this platform, users access the menu, place an order and make a payment. The delivery person then picks up the order at the restaurant and takes it to the customer.

Uber

Uber has upended traditional transportation. Its app lets customers to book a car and driver for short or long-distance trips, providing an alternative to traditional taxis and public transport.

Airbnb

Airbnb is a disruptive platform that has transformed the hotel business. It enables individuals to rent out their houses or rooms to interested parties, providing a more cheap and unique experience than traditional hotels.

Amazon

Amazon has transformed traditional retail by bringing convenience to online shopping. On its website, you can find a wide range of products. It has also developed its own streaming service, as well as cloud services that are used globally.

Apple

Apple is a disruptive company that has developed products such as the iPhone, iPad, MacBook, Apple Watch, among others. Its focus on technological innovation continually redefines the market, bringing products with superior design and connected in its own ecosystem.

What to consider when implementing disruptive innovation?

You have seen examples of companies that have innovated and taken the lead in their segments. Now, you may be wondering what to consider when implementing disruptive innovation in a company.

The task requires strategic planning and a clear vision of market opportunities, identifying gaps in it. The research can be done by looking for the pain points of customers in your sector.

Based on the analysis, it is time to develop solutions that meet these needs in a differentiated way. Invest in processes that support innovation at all stages, to prevent projects from remaining just ideas.

In addition, assess the financial viability of the project, considering costs, return on investment and capital recovery time. The business will not always yield immediate results, so it is important to stay focused and correct any errors in the project.

When launching your product or service, invest in marketing to increase its reach. One easy way to promote your product or service is by producing content — such as articles, infographics, and e-books — for websites, blogs , and social media.

This way, you can generate interest in your target audience and keep them engaged. In addition to consolidating the company's image, this approach can increase consumer confidence, promoting more sustainable growth for the business.