When Rhode Island School of Design graduates Brian Chesky and Joe Gebbia were struggling to pay their rent in 2007, the pair brainstormed ideas to earn some extra money. They came up with the idea to rent out three airbeds in their apartment and also provide breakfast the morning after. At the time, nearby hotels were beginning to sell out because of a big upcoming design conference in their neighborhood. Chesky and Gebbia created a website called airbedandbreakfast.com to advertise their makeshift bed and breakfast experience......

Questions

1. What were the key factors that contributed to Airbnb’s market success?

2. How was Airbnb able to create and sustain a competitive advantage? What are Airbnb’s points of parity and points of difference?

3. Going forward, what should Airbnb do to sustain its competitive advantage? How can it gain and defend its market position?