Disruptive Innovation refers to a process where a smaller company with fewer resources successfully challenges established businesses. This often occurs by targeting overlooked segments of the market, offering simpler, more affordable solutions that eventually improve over time. A classic example is Netflix, which started as a DVD rental service and disrupted the traditional Blockbuster model by introducing streaming services. As these innovations gain traction, they can redefine entire industries. Companies that fail to adapt may find themselves outpaced by these newcomers. Understanding Disruptive Innovation is crucial for businesses aiming to stay competitive in a rapidly changing market landscape.