#FFLDEFINES Disruptive Innovation

Categories: FFL Stories


Downmarket Goes Mainstream

Clayton Christensen defined this in 1995 as the process where: 

  • A smaller company challenges an incumbent by serving needs at the bottom of the market (a segment often ignored by the incumbent) at a reduced cost.
  • As the incumbent continues to ignore these developments, the smaller company eventually moves upmarket and offers solutions “good enough” for the incumbent’s mainstream consumers.
  • Disruption happens once the incumbent’s mainstream consumers are attracted by the small company’s offer.


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