Disruption Theory, developed by Clayton Christensen, explains how smaller companies with fewer resources can successfully challenge established businesses. These disruptors often start by targeting overlooked segments of the market, offering simpler, cheaper, or more convenient products. Over time, they improve their offerings and move upmarket, eventually displacing established competitors. The theory highlights the importance of innovation and adaptability in business. Established companies may focus on improving their existing products for their most profitable customers, leaving gaps that disruptors can exploit. This cycle emphasizes the need for businesses to stay aware of emerging trends and potential threats to their market position.