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Airbnb- A Disruptive Innovator - Assignment

   

Added on  2021-07-09

9 Pages2550 Words51 Views
Case Study:Airbnb – A Disruptive Innovator

2Table of ContentsIntroduction3Analysis and Evaluation3Innovative Business Models Elements Adopted3Analysis of Revenue Structure4Disruptive Innovation6Reasons for becoming one of the biggest competitors6Proposed Recommendations6Conclusion6References7

3IntroductionThe following report analyses the given case of Airbnb, which is a crowdsourced internetmarketplace for listing and renting local residences. It links hosts and visitors and streamlinesthe rental process without owning any rooms. It also promotes the sharing economy byallowing property owners to rent out their private apartments.Hence, the report is going to analyze the various elements of the business models and revenuestructures that have been adopted by the organizations. This helps to understand the conceptof disruptive innovation and helps understand why it emerged to be the greatest businesssecuring its place in a significant position. The report also helps with the development of anew organizational structure for experiencing boosting productivity in their service.Analysis and EvaluationInnovative Business Models Elements AdoptedWhen one looks at what makes Airbnb's business model unique, one can notice that it isexponential in practically every regard. Especially when compared to a hotel company'sbusiness plan, such as Marriott, which is regarded as the world's largest hotel chain. Whencomparing the two, it can be clear that the major improvements the firm has made in thehospitality business have allowed it to scale hospitality in ways Marriott can only dream of.The simplicity of Airbnb's business model is maybe the most intriguing aspect. Airbnb'sbusiness strategy is a multi-sided marketplace that connects passengers with hosts andexperience providers, as you can see. Booking fees from hotels and experiences are how thecompany makes money (Biber et al., 2017).For starters, the firm fulfils many dreams of people and solves a problem. When Airbnb'sbusiness model is simply put, it can be seen that it is built for the masses, and it evenuniquely connects them. The firm has built fan groups for all of its client segments thanks toits rating system and ability to customize the experiences provided. It can be argued that thecompany uses a completely digital channel. There are no front desk receptionists or bookingagents to contact. Clients can use an app to book reservations or browse options available, aswell as maintain listings and experiences. Because being a marketplace, the company's mainvalue proposition must be founded on the information. In other words, Airbnb does not ownany of the properties and has no need to provide value in the form of tangible assets. Rather,the company's business model is based on connecting people who have something to offer

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