Airbnb- A Disruptive Innovator




Case Details Case Introduction 1 Case Introduction 2 Case Excerpts

Abstract

The case is about a San Francisco-based home-sharing website, Airbnb, which served as a platform for people to rent out their underutilized spaces. The idea for Airbnb, or Airbed and breakfast, was born in 2007, when some delegates to a conference held in San Francisco, found all the hotels booked and no accommodation available. Two friends, Brian Chesky (industrial designer) and Joe Gebbia (also a designer) decided to rent out extra space in their apartment to some of these delegates. In the process, they made more than US$ 1,000.

This gave them the idea of taking the business forward and AirBed and Breakfast Inc. was incorporated in 2008. They were then joined by Nathan Blecharczyk, a technical architect...

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Issues

The case is structured to achieve the following teaching objectives:

  • Understand the emergence of innovative business models.
  • Study how innovative business models help companies grow and gain competitive advantage.
  • Study how innovation drives economic competitiveness.
  • Understand various concepts like disruptive innovation, sharing economy, and collaborative consumption.
  • Identify the role of entrepreneurs in any industry and the challenges they face while establishing a startup.
  • Understand how Airbnb’s innovative business model helped it become one of the largest hoteliers in the world, without owning any assets.
Contents
INTRODUCTION
AN INNOVATIVE STARTUP
CONNECTING TRAVELERS AND AFFORDABLE ACCOMMODATION
REVENUE
THE OTHER SIDE
LOOKING AHEAD
EXHIBITS

Keywords

Disruptive innovation, collaborative consumption, Airbnb, sharing economy, startup, service innovation, disruption, business models, marketplace platform model

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