According to (David, 2010), there are strategies that allow a firm to gain a competitive advantage/s. The case shows that Airbnb has demonstrated its competitive advantage in the hospitality business through its growth and profitability in the sharing economy market. While its competitors continue to compete in the traditional hotel business. Airbnb differentiates itself by providing a platform where a homeowner/hosts to have their room/space rented and for travelers/tourist looking for affordable room avail it. Availing the room provides its customers a unique experience and home feel which is different offered by hotels.
Airbnb’s growth has shown that their business model provides demand and supply to a different market. It has enabled homeowners a way to earn revenue while providing alternative accommodation that is lower priced compared to regular/deluxe rooms offered by competing hotels. Airbnb’s strategy offers differentiation as they offer an alternative to the traditional business model as they do not compete directly. At the same time offers a strategy of cost leadership as it helps to offer to customers cheaper and affordable option compared to traditional hotels with the use of its Airbnb platform. And as more host/traveler continue its platform, it continues to connect Millions of people giving it a competitive advantage over its bigger brick and mortar competitors using technology.