From the course: Developing a Competitive Strategy
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Competing through disruption
From the course: Developing a Competitive Strategy
Competing through disruption
- Airbnb illustrates how a company can enter an industry and succeed against dominant incumbents by disrupting the traditional rules of the game. Founded in 2008, Airbnb enabled people to rent a spare bedroom or a spare couch to another person at a price lower than what even budget hotels may charge. Airbnb has disrupted the lodging industry by redefining the concept of a hotel and a hotelier. Instead of large institutions which may directly own or control thousands of rooms globally, Airbnb uses the power of the internet to enable almost anybody to become a hotelier. The hotel chains are now scrambling to figure out their response. Generalizing from the Airbnb story, there are three different strategies that newcomers or existing players can deploy to disrupt the current dynamics of an industry. The three strategies differ in terms of whether they disrupt one, two, or all three elements of the incumbent's business model. One, deciding who your target customers will be. Two, defining…
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