Disruptive innovations originate in low-end or

new market footholds.

To comprehend this accusation, we must first look at what
it means to introduce a truly disruptive innovation.
According to its definition, to be genuinely “disruptive,”
the product or service must target either a low-end
foothold or a new-market foothold.
A low-end foothold depicts those individuals or companies
at the bottom of the market. Innovators who target the
low-end foothold offer products or services that are more
affordable than those currently on the market. According
to the theory, incumbents typically try to provide their
most profitable customers with products or services that
are constantly improving; this leads them to pay less
attention to those who either cannot or do not want to pay
more money for a greater value that may not be necessary
for them. They tend to overshoot this low-end group.
The disruptive innovators start by offering a lower-quality
product or service to capture the low-end foothold. They
then increase the quality and price over time and are able
to gradually take over more and more of the overall
audience. This can result in the disruptive innovator
eventually dominating the market.
Now, let’s take a look at the new-market foothold. In this
instance, disruptive innovators create a market where
none existed, therefore, targeting an entirely new category
of consumers.