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Case
-
Reference no. 317-0270-1
Published by:
IE Business School (2017)
Revision date:
11-Aug-2017
Length:
19 pages
Data source:
Published sources
Abstract:
This case describes the process of growth of a sharing economy firm with a platform business model, which can be potentially disruptive for the hotel industry. Using AirBnB's entry in Spain and the response from the hotel industry, the case looks in detail at the nature of the business model of a sharing economy firm and the challenges its advancement poses for the hotel industry.
Learning objectives:
1. Introduce the concepts of business model, business model innovation, and disruptive innovation and apply these concepts to discern the effect of AirBnB's market entry on the hotel industry. 2. Discuss the response of incumbents to a disruption.
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