Tech startups disrupt traditional industries by introducing innovative solutions and leveraging technology to address unmet consumer needs. They often utilize agile methodologies, allowing for rapid development and iteration in response to market demands. By focusing on user-centric designs and efficient business models, startups can offer enhanced products or services that challenge established players. This disruption frequently leads to increased competition, forcing traditional companies to adapt or risk obsolescence. Examples include ride-sharing apps challenging taxi services and subscription models reshaping retail.