Drag each step to the numbered slots on the right in the correct order.
Incumbent firms notice but underreact, dismissing the threat as irrelevant to their core customers or profit pools.
The disruptor improves its product iteratively, quietly building a loyal customer base while incumbents continue focusing on their premium segments.
The disruptor achieves market leadership as the old technology or business model becomes obsolete — creative destruction is complete.
A new entrant targets an overlooked, low-end or non-consuming market segment with a simpler, cheaper product that incumbents dismiss as inferior.
Incumbents attempt to respond by copying or acquiring the disruptor, but often too late to reverse market share loss.
The disruptor’s product reaches ‘good enough’ quality for the mainstream market, and it begins capturing customers from incumbents.