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.