💼 Pre-MBA Exam Prep

Disruptive innovation theory describes how:

A Large companies always win
B Simpler, cheaper innovations initially serve overlooked segments then eventually overtake established products
C Only technology companies innovate
D Innovation is always expensive

✓ Correct Answer: Option B

Christensen's disruptive innovation: new entrants target low-end or new markets with simpler solutions, then improve until displacing incumbents. Incumbents often miss the threat.

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