Disruptive Innovation and Its Impact on Traditional Business Models: A Multi-Industry Study

Abstract

This study examines the concept of disruptive innovation and its significant influence on conventional business models across several industries. Disruptive innovations, defined by novel technology or business practices that revolutionise markets, confront established firms by providing more accessible, cost-effective, and straightforward solutions. The study examines the impact of innovations on industries including technology, healthcare, retail, and finance, focussing on market responses, adoption rates, and subsequent changes in market share and profitability. The paper integrates case studies and theoretical perspectives to create a comprehensive framework for understanding disruption dynamics, offering insights for traditional organisations on adaptation and innovation to maintain competitiveness. This research employs qualitative case studies and quantitative data analysis to investigate how traditional companies in the technology, healthcare, retail, and finance sectors respond to disruption, the rate of innovation adoption, and the resulting impact on market share and profitability. The findings indicate that specific organisations effectively adjust to disruptions through innovation within their current business models, whilst others encounter substantial difficulties, such as market decline and diminished competitive advantage. The report offers practical insights for organisations to manage disruptive change, emphasising the necessity of strategic flexibility, innovation uptake, and consumer-centric strategies to maintain long-term growth in a turbulent market landscape.