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In his book The Innovator's Dilemma, Clayton Christensen discusses the idea that there are times when it is appropriate for a company to disrupt its own business model in order to stay ahead of the competition. He gives several examples of when this has occurred in the past, and why it was successful.
One example he gives is that of the personal computer industry. In the early days of the PC, there were two distinct market segments: business users and home users. Business users needed computers that were powerful and could handle complex tasks, while home users just wanted something that was easy to use and relatively inexpensive.
Christensen argues that it was the home user market that was ripe for disruption. The first computers designed for home users, such as the Apple II and the Commodore 64, were much less powerful than the business-oriented machines of the time. However, they were also much easier to use and much less expensive. As a result, they quickly gained market share from the more expensive business machines.
Another example Christensen gives is that of the digital camera market. In the early days of digital photography, the quality of the images was not nearly as good as those taken with traditional film cameras. However, digital cameras were much smaller and easier to use. As the quality of digital cameras improved, they quickly gained market share from traditional film cameras.
Christensen's third example is that of the automobile industry. He argues that the Model T was a disruptive innovation in the automobile market. When it was first introduced, the Model T was much less expensive and much easier to use than the other cars on the market. As a result, it quickly gained market share.
Christensen's fourth and final example is that of the airline industry. He argues that the Wright brothers were disruptive innovators in this industry. When they introduced their airplane, it was much less expensive and much easier to use than the other transportation options of the time. As a result, it quickly gained market share.
In each of these examples, Christensen argues that the disruptive innovation was successful because it was able to gain market share from the existing players by being less expensive and easier to use. He also argues that each of these industries eventually shifted to a new business model in which the less expensive and easier to use option became the dominant player.