CHAPTER 2

Key Concepts of Disruption

We must learn to tailor our concepts to fit reality, instead of trying to stuff reality into our concepts.

—Victor Daniels

One of the unique things about disruption theory, when compared to alternative theories of innovation, growth, market formation, and economics, is how it originated from the study of an apparent market anomaly—a repeating narrative of small “David” startups beating large “Goliath” incumbents whose market advantages included size, money, and talent, as well as a wealth of knowledge and experience about the marketplace (i.e., their customers). In contrast with most business theories that try to “stuff reality into concepts,” disruption theory is entirely derived from observing and recording ...

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