Disruptive innovation is known to do what?

Disruptive innovation refers to the process by which a smaller company with fewer resources is able to successfully challenge established businesses. The correct choice highlights that disruptive innovation often creates new markets by introducing simpler, more affordable offerings that appeal to overlooked segments of consumers. This process typically begins with a product or service that is less sophisticated but is sufficient for the needs of certain customers, allowing the disruptive innovation to grow and eventually displace competitors.

While the other options may have some relation to innovation and its impacts, they do not capture the essence of what defines disruptive innovation. Options focusing on reducing costs for all products or improving existing products do not accurately reflect the novel market-creating aspect of disruptive innovation. Enhancing customer service experiences can be a result of innovation, but it doesn’t specifically align with the creation of new markets or simpler, cheaper products that distinguish disruptive innovation.