Digital Transformation

Airbnb
 Value Proposition
• What value proposition is being created by the firm?

Airbnb started as airbed in some random person's living room for a really low price. It
wasn't a replacement for high end hotels. People that were attracted to Airbnb were not
the same people that were attracted to Marriott as it had none of the good qualities of a
hotel. It's business model allowed for these low-value customers because it didn't require
Airbnb to own the property or employ the operating staff. A low-cost solution to a low-
value customer.

• What is the nature of the innovation in the product, service, or

offering?

Airbnb provided a two sided network platform where owners could list their properties
and users looking for cheap alternative to hotels can easily locate the property.

• How is this value proposition unique, innovative, or disruptive?

Airbnb is classic case of disruptive innovation. Airbnb went after after non-consumers
that are priced out of the market. Accommodation options provided were inferior to
products in some dimension that's important to t customers - allowing them to safely go
under the radar of existing players (hotel industry)