Assignment 11 – Surviving Disruption

Think about how to analyze and respond to a disruptive challenger if you find yourself facing
one.

TASK

For this module’s assignment, you will be thinking about how to analyze and respond to a
disruptive challenger if you find yourself facing one.
The industry you will be focusing on is hotels and hospitality. AirBnb is a new disrupter that is
challenging the industry.

Some established hotel chains in the industry, with links to more information about them, are:
1. Marriott
o https://en.wikipedia.org/wiki/Marriott_International
o http://www.marriott.com/marriott/aboutmarriott.mi
2. InterContinental Hotels Group
o https://en.wikipedia.org/wiki/InterContinental_Hotels_Group
o https://www.ihg.com/content/us/en/about/brands#scmisc=nav_brands_6c
3. AccorHotels
o https://en.wikipedia.org/wiki/AccorHotels
o http://www.accorhotels.com/

These are all brands that are being challenged by a disrupter, AirBnb.
o https://en.wikipedia.org/wiki/Airbnb
o https://www.airbnb.com/about/about-us

Here is an interesting article about the impact of AirBnb on the hotel and hospitality industry:
http://m.hospitalitynet.org/news/4074708.html

Imagine that you are working for a leading company in the hotel and hospitality industry. You
do not have to limit yourself to the examples above – you can pick any other established
incumbent in the industry. Some other examples are Hyatt or Hilton.
Analyze the threat posed by AirBnb to the company that you choose and plan your response
using the Disruptive Response Planner.

First work through the three variables – customer trajectory, disruptive scope and other
incumbents, and then look at the six incumbent responses.

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Analyze the threat and plan your response by answering the following questions:

1. What is the customer trajectory? Think of the defections and what is likely to
happen. Who are you likely to lose first, who might follow next and how might that
proceed from your current customers, as the incumbent.

2. What is the likely scope of your customer loss? Look at different use cases, different
customer segments, are there network effects or not? Do you think it’s going to be a
niche or splitting the market or a total takeover by the disrupter?

3. Are there any other incumbent industries who you think might be affected by this
same disrupter? To think about this, you can use some of the tools you have seen in
earlier weeks such as total value train.

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 4. Now look at those responses. Of the six responses that you’ve seen, which ones do
you think are available to you as this industry or incumbent. Provide a detailed
explanation for each recommendation.
a. Build your own disrupter
b. Buy the disrupter
c. Split the disrupter with another incumbent who is also challenged
d. Refocus on your remaining customers
e. Diversify your business while you can
f. Make a fast exit

Which of these do you think are available to you? Which would you then recommend?
And how would you apply that response if you were going to pursue it yourself?

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