What does the term "disruptive innovation" refer to?

The term "disruptive innovation" refers to innovations that simplify markets and reduce costs, effectively changing the landscape of an industry. This concept, introduced by Clayton Christensen, describes how smaller companies with fewer resources can successfully challenge established businesses. Disruptive innovations often start at the bottom of the market, targeting overlooked segments and meeting basic needs. Over time, these innovations improve and eventually displace established competitors.

By simplifying processes or making products more accessible and affordable, disruptive innovations can democratize technology or services that were previously reserved for a high-end market. This approach not only alters consumer behavior but can also create entirely new markets by bringing in new customer bases who were formerly unable to participate due to cost or complexity barriers.

The other options don’t accurately capture the essence of disruptive innovation. For instance, increasing market complexity or solely focusing on improving existing products does not align with the transformative nature of disruption. Additionally, having no impact on market accessibility directly contradicts the concept, as disruptive innovations are fundamentally about enhancing access and reducing barriers for consumers.