Here's how you build a billion dollar startup

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Uber, Netflix, iPhone, ChatGPT.
 
What do they have in common?
 
They've redefined industries.
 
But what does "disruption" really mean in the startup universe?

Defining Disruption

A disruptive product emerges when it:

1. Addresses an overlooked market.

2. Offers a cheaper, simpler, or more accessible solution.

Why don't giants simply adapt? 
 
They're too deeply anchored in their primary market, often overlooking the need for innovation over mere improvement.

Case in Point - IBM vs. Compaq

In the 1980s, IBM ruled with high-end disk drives.
 
Enter Compaq, with affordable yet lesser-powered drives.
 
While IBM stayed its course, Compaq evolved without hiking prices.
 
The result? Compaq's rise to prominence.

The Mastermind Behind the Theory:

Clayton Christensen, a Harvard professor, unveiled the intricacies of disruption in his seminal book, "The Innovator's Dilemma" in 1997.
 
A slow starter, it's now an essential read for every founder.

Christensen’s keys to disruption:

1. Cater to the "low-end" market.

2. Focus on emerging markets left behind by the big players.

Takeaways:
 
Disruption theory champions startups, even when pitted against industry titans.
 
It's a nudge for corporates: ignore startups at your risk, especially those breaking into new terrains.

For more insights, delve into "The Innovator's Dilemma”